What is property auction finance and who are the fastest lenders in property?
Bridging Loans: Property auction financing explained.
Property auction finance is a type of bridging loan that is specifically designed for purchasing a property at a property auction. Property auctions typically involve buying properties that are being sold by banks, mortgage lenders, government agencies, or private sellers.
How does property auction work?
In a property auction, the buyer is typically required to pay a deposit on the day of the auction, which is usually a percentage of the purchase price, and then complete the purchase within a specified timeframe, typically 28 days. Property auction finance is a type of short-term financing that can help buyers secure the funds they need to pay the deposit and complete the purchase within the required timeframe.
Preparing for Auction: Arranging Financing in Advance
Property auction finance is typically offered by specialist lenders who understand the unique requirements of buying at auction. The financing can be secured against the property being purchased or other assets and can be used to cover the deposit and other costs associated with the purchase. Property auction finance is usually offered at a higher interest rate than traditional mortgages, as it is considered a higher-risk form of financing due to the quick turnaround time required. However, it can be a useful option for buyers who need to move quickly to secure a property at auction.
It's important to carefully consider the terms and conditions of any property auction finance agreement, as well as the associated costs, to ensure that it is the right option for your individual circumstances. It's also recommended to seek professional advice from a financial advisor or mortgage broker before making any decisions.
Buying property at auction: Basics
Buying a property at auction is a different process than buying a property through traditional methods, and there are several unique requirements that buyers should be aware of:
Research the property and the market
Before the auction, buyers should research the property thoroughly to understand its value, any potential issues, and the local property market. This will help them determine the maximum price they are willing to pay for the property.
Financial arrangements
Buyers need to have their finance in place before the auction, as they are typically required to pay a deposit on the day of the auction and complete the purchase within a specified timeframe, often 28 days.
Legal due diligence
Buyers should conduct legal due diligence on the property before the auction, including obtaining a copy of the legal pack and reviewing any title issues, planning permissions, and other relevant documentation. If possible, in advance of the auction date, you should engage a surveyor to inspect and advise you on the physical aspects of the property.
Making a bid on an auction property
Buyers need to be prepared to bid for the property in a competitive auction environment, where other bidders may push up the price.
Auction rules and regulations
Buyers should be familiar with the rules of the auction, including any registration requirements, bidding procedures, and payment terms.
Auction conditions of sale
Buyers should carefully review the conditions of sale before bidding, as they will be legally bound by these conditions if they are the successful bidder.
Exchange of contracts at auction
If the buyer is the successful bidder, they will be required to exchange contracts and pay the deposit on the day of the auction. This means that they will be legally committed to completing the purchase within the specified timeframe.
It's important to carefully consider these requirements before buying a property at auction, and to seek professional advice from a solicitor or conveyancer to ensure that you understand the legal obligations and risks associated with this type of purchase.
How can I finance property auction and who are the fastest property auction finance and fast bridging lenders in the UK?
There are several reputable property auction finance providers in the UK, including banks, specialist lenders, and mortgage brokers, that offer fast finance solutions for buyers at property auctions. To find the fastest property auction finance providers in the UK, you can research and compare providers online, read customer reviews, and seek recommendations from professionals in the property industry. You can also consult with a mortgage broker who specialises in property auction finance, as they can provide advice on the best options based on your individual circumstances and requirements. Additionally, you can ask the auctioneer or the seller's agent for recommendations, as they may have experience working with specific providers.
Risks and Considerations in Auction Property Financing
When considering property auction finance providers, it is important to review the terms and conditions, interest rates, fees, and repayment options to ensure that the financing solution meets your needs and fits within your budget. It is also recommended to seek professional advice from a solicitor or conveyancer to ensure that you fully understand the legal obligations and risks associated with property auction finance.
Some of the well-known property auction finance lenders in the UK include:
easyMoney: A UK-based provider of short-term loans. It offers cash loans and lines of credit designed to help individuals meet their immediate financial needs. The loans can be applied for online, and the funds can be deposited into a borrower's bank account within a few hours. easyMoney offers quick and easy access to cash, with flexible repayment terms and no hidden fees.
Together: A specialist lender that offers short-term bridging loans for property purchases at auction, with a streamlined application process and quick decision-making.
Shawbrook Bank: A specialist lender that offers bespoke finance solutions for property purchases at auction, with a fast and efficient application process and a range of loan options.
Precise Mortgages: A lender that offers bridging finance for property purchases at auction, with a focus on quick turnaround times and flexible repayment options.
Market Financial Solutions: A specialist lender that offers short-term bridging loans for property purchases at auction, with a fast and efficient application process and a focus on personalised service.
It's important to carefully consider the terms and conditions, interest rates, fees, and repayment options of each lender before choosing a property auction finance solution. It's also recommended to seek professional advice from a mortgage broker or financial advisor to ensure that you fully understand the legal obligations and risks associated with property auction finance.
easyMoney’s short-term bridge loans can be a perfect source of property auction finance.
· We pride ourselves on flexibility and speed.
· With fast underwriting, we can go from application to completion within three working days.
· We lend on property (land and buildings of any type) secured on a first charge basis.
· We have no fixed requirements and look at each case on its own merits, assessing borrowers needs individually.
· We deal with both brokers and borrowers and are available after hours on our private mobile telephones.
· We respond to all on-line applications the same day and will aim to prepare an offer within 24 hours.
This blog for informational purposes only. All the facts and figures presented are accurate at the time of posting.
easyMoney is not a cash savings account. You may not get back the full amount you put in. Your capital is at risk if you invest. Peer-to-peer investments are eligible for an Innovative Finance ISA which is not a Cash ISA. They are not protected by the Financial Services Compensation Scheme (FSCS). Money invested through easyMoney is concentrated in property and could be affected by market conditions. For the same reason, instant access cannot be guaranteed. We do not offer investment or tax advice; this blog is not intended and should not be interpreted as such. easyMoney is the trading name of E-money Capital Ltd, a company incorporated in England & Wales. Registered office is 5 Fleet Place, London, England, EC4M 7RD (Company No. 04861007). E-money Capital Ltd is authorised and regulated by the Financial Conduct Authority (FCA) #231680.