Property investors and owner occupiers find buying property at auction an excellent way to pick up a bargain on a property. As buyers exchange and pay 10% deposit it is very unlikely that transactions fall through which makes auctions an excellent avenue for sellers.Many of the high street banks and specialist lenders use auctions to sell their repossessions as this gives the major advantage of selling the property fast and gives a buyer an opportunity to usually pick up a bargain.How are purchases financed at auctions
Auctions conditions state completion within 28 days to be the norm and some may even ask for completion in 15 days. Thus if you do bid for a property at auction you must have the funds on place to buy the property or have the finance ready.The current market conditions have made it difficult to obtain an agreement in principle from high street lenders and lenders are taking a very long time to make a decision on applications. It is common for lenders to even pull offers at the eleventh hour.
Bridging
Many buyers use bridging finance to ensure they complete on the transaction within the 28 days timescale. They take out bridging finance for a couple of months until traditional forms of lending are in place. Once a traditional mortgage or the funds are in place, this then used to exit out of the bridging loan. Bridging finance gives a buyer the confidence to bid as they are able to secure an agreement in principle with Mayfair Bridging prior to making an offer at auction. We give you a decision within the hour whereas a traditional mortgage lender would take days if not weeks.In some cases Mayfair Bridging may even be in position to lend 100% of the purchase price if additional security is offered. Unlike traditional banks we are commercially minded lenders and we will try our very best to do the deal. This makes Mayfair Bridging your first and should be your only point of contact for property finance. We lend to properties that the majority of high street lenders wouldn’t even touch.
Speed and Flexibility
Buying at auction requires the speed and flexibility to do the deal. Mayfair Bridging pride their credentials on speed. Clients require a quick turnaround on a deal. Our average completion time for a transaction is just 5 working days! Once an enquiry is made to Mayfair Bridging you speak to a decision maker who has an interest in making the deal work.
‘’Faster Completions’’
‘’Quick turnarounds’’
‘’Decisions within the hour’’
‘’Mayfair Bridging your only point of contact for auction finance’’ |
