Buying at auction offers great opportunities for buy-to-let landlords and home-buyers looking to bag a bargain, but lining up finance in time can be a challenge.
Specialist lender Together can help, arranging bespoke auction finance quickly and easily.
Auction House Coventry & Warwickshire introduced a keen buy-to-let client to Together, to arrange funds when they needed auction finance to secure their latest property purchase in the Midlands. The money was provided quickly with just a desktop valuation.
The limited company buyer had an existing portfolio of six buy-to-let properties and needed support to secure a seventh. Together was able to provide a bridging loan of £262,500 on the property, which had a purchase price of £350,000 (75 per cent loan-to-value) with no lender legal fees.
Our customer said: “Together provided such fantastic service – my contact Amy Schofield did not let me down at any point in time from start to finish. I submitted the paper around 10am and the offer was sent to my solicitors by 4pm, the quickest ever turn around in my experience. I will be using Amy and Together again soon and would not have any hesitation in recommending them to anyone who needed any help.”
What is auction finance?
Auction finance is a type of short-term finance known as bridging finance, and it’s used to complete the purchase of an auction property within a tight timescale – sometimes in a matter of days. Like a mortgage, it’s secured against a property, but instead of spanning many years, the loan typically runs for up to 12 months.
That means that buyers can use auction finance to bridge the gap until they can secure longer term finance like a traditional mortgage, or they can sell other assets to pay back the loan. You can either make interest-only repayments every month or pay nothing for the term of the loan, then pay back the full amount plus interest in one go.
Why choose specialist auction finance?
As there are no early repayment charges, you can even choose to pay the loan back early, and you’ll only be charged interest on the time the loan was in place, which could save you a significant amount.
It can be used by home buyers and investors and covers property purchases that might not be covered by high street mortgage lenders, so whether you’re looking to add to your portfolio, find a home to add value or a property to do up and flip, auction finance could help you seal the deal.
Who are Together?
Together are market leading property finance experts with a common-sense approach to lending. They support individuals, businesses and property professionals to realise their ambitions by making finance work for them. They work with borrowers with non-standard incomes, complex finances and challenging properties to make bespoke lending decisions based on the big picture, not standard lending criteria tick boxes.
Together can arrange auction finance within the 20 working days required to secure an auction purchase, and often even faster.
Need help funding your auction property ambitions? Learn more about Together auction finance here, or get in touch with one of their auction experts for personalised lending advice.
Lending decisions are subject to an affordability/creditworthiness assessment.
Any property used as security, including your home, may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.
