Key Features

Buying a property at auction can be very exciting and has the potential to be very profitable. It avoids all the usual lengthy procedures that a normal purchase involves. And there’s less risk and disappointment of everything falling through at the last minute. At auction, as soon as the hammer falls, the property is yours. For that reason, you need to have arranged your auction financing in advance.

On the day of the auction, you need a 10% deposit, providing the other 90% within 28 days so you’ll need to have a mortgage in principle from a lender, before the day. If you need financing for auction property, it’s essential you speak to an experienced and specialised broker who knows the market.

We have arranged financing for auction property  for many customers looking for auction financing and have expertise in financing for auction property. With this in mind, we wanted to explain the areas customers need to be wary of, as well as knowing where the best deals are.

When arranging a mortgage for an auction property, there are several areas that need to be very carefully considered.

  • Broker fees. Some mortgage brokers can charge pretty hefty fees.
  • Lenders arrangement fees. These can vary significantly and need to be carefully reviewed. In some cases there may not be a fee, but the minimum term is longer.
  • Interest rates. Some lenders charge an ‘introductory’ interest rate, which can be as low as 0.75% but which doubles after 6 months. Or, the interest rate may be 0.75% but there is also a management fee of 0.75% making the true cost 1.5%.
  • Exit fees. Lenders charge interest by a daily or monthly basis. This means should you wish to come out of the deal, the fees are considerably more than going with a lender that charges interest on a daily basis.
  • Minimum terms. What is the minimum term? With some lenders, it’s 3 months.

Key Information and Benefits

  • Speak to a consultant today for a free personal consultation and they will handle your case from enquiry to completion
  • Flexible and creative financing solutions to meet your needs from our panel of 100+ lenders
  • Loans/mortgages from £100,000 to £20 million (smaller loans only considered in exceptional circumstances)
  • Market leading interest rates. The actual interest rate will depend on the risk, quality of the credit profile and the purpose of the loan/mortgage
  • Lowest overall cost of financing will be considered for your individual case
  • All incomes levels, evidence of income, credit histories and funding requirements will be considered
  • High loan to values available 100%+ funding can be achieved with additional security or by introducing more than one lender to a case
  • Financing terms can be short term (a few months) or long term (many years) to suit your needs.