Securing Funding For An Auction Property In Days Rather Than Months

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March 24, 2021

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It is known that you could get a good deal on a property when going to auction, however the process is slightly different to buying a property from an estate agent – time is of the essence as once the hammer falls you are legally required to pay a 10% deposit. If you are unable to complete the purchase within 28 days you could lose this. This is where bridging becomes an option and funds could be released in just 7 working days.

What is Bridging Finance?

Bridging finance is a short term finance where the funds can be released in a short period of time. Often this is used to ‘bridge the gap’ if you want to buy a new home before selling yours of for buying a property at auction where you haven’t been able to

We have detailed a case study below where we can help secure bridging finance for you when you come to buy a property at auction.

The client was looking to buy a new property to move into and sell their current home. They were looking to borrow 50% of the purchase price with the remaining being funded by family. The sale of their current home would not complete in time to meet the auction deadline of 28 days. They paid their 10% and then were against the clock.

When proceed with a Bridging loan a strong exit strategy is required. With this client they already had the sale of their current home in progress and with the solicitors, providing an acceptable exit strategy. The lender did not require a physical valuation as they were able to use a desktop valuation which sped up the process considerably.

The funds were released within 7 working days, allowing them to complete on the purchase of their new property and move into their new home stress free as the sale of their current property was proceeding in a timely manner giving the clients peace of mind that they would be able to repay the bridging loan.

How Can Smarter Mortgages Help?

When a bridging loan is required this is usually because speed is crucial. At Smarter Mortgages we work fast and efficiently to ensure you get the funds you need, when you need it.

If you think a Bridging Loan may be suitable for you give one of our brokers a call on 01233 512170.

Published On: March 24th, 2021 / Categories: All News, Property / Tags: , /

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