Auction Finance

Being able to get funding on short notice when you want to buy property at an auction is important; otherwise, you may miss out on purchasing the property you want. Unfortunately, traditional funding typically takes a long period of time, making it difficult for people to secure the type of funding that they need to buy property at auction.

Auction finance is a short-term financial product

The best way to make sure that you have the funds you need when buying property at an auction is to rely on auction finance.

Also known as bridging or short-term finance, auction finance makes it possible for borrowers to get the money that they need to purchase property in a short period of time. Almost any type of property can be purchased using auction finance, even if the property is not currently habitable. This is another feature that sets this type of lending apart from others that are currently available, as most require the property to be habitable. Both residential and commercial property can be purchased using auction finance, and they make it easy for landlords to buy property as well.

Both business owners and investors can use auction finance to purchase commercial property. This may include warehouses, leisure centres, pubs, offices, and shops. When wanting to buy commercial property, it is often important to move quickly so that the borrower is able to beat any other people who are interested in purchasing the property, and auction finance is generally the fastest way to get the necessary funding.

Let our AI software compare rates for auction finance against high-street banks and other institutions:

Auction finance removes the need for a costly traditional mortgage

By using auction finance to purchase property at an auction and then refinancing the purchase at a later time, borrowers are often able to get a great deal on a piece of property without having to worry about how they are going to arrange a traditional mortgage. Refinancing the property later makes it possible for the borrower to get a great rate.

There are some conditions for purchasing property using auction finance and also for refinancing the property later, but since each lender has his or her own set of rules and regulations, it is wise for the borrower to talk to the particular lender about any restrictions that are in place. While some lenders require landlords to own their property for more than six months before refinancing the loan, others do not require this.

Using auction finance is a great way to buy property quickly and often at below-market value. Being able to purchase property when it is at the right price can make a huge difference in a person’s success or failure as a landlord, and, for this reason, working with a company that provides auction finance is important.

Advantages of bridging finance for auction property

There are a number of reasons why people use auction bridging loans to buy property at auction. Not only will you already have a set amount that you can bid, but you can close and bridge very quickly so that you can begin work on the property. You will already be prepared for how much the project will cost, and you will understand the amount of interest that you will have to pay back so that there are no surprises.

It’s important that you are aware of the risks as well as the advantages when considering a bridging loan for auction properties, so that you are not taking on too much risk that you are unable to handle. At donkey.finance, we are happy to talk to you about the pros and cons of auction bridging loans. This will ensure that you are aware of all of the stipulations of this type of loan, know how to pay it off, and don’t accidentally borrow more money than you actually need. Using an auction property bridging loan is the best way to buy property at auction, and when you work with an expert and reputable lender, you do not have to worry about taking as many risks.