Auction finance is a specialised form of short-term borrowing designed to help individuals and property developers secure funds quickly to purchase properties at auctions. It provides the necessary financing to complete the purchase within the tight time frame typically associated with property auctions.
Auction finance can be used for various purposes related to property auctions. Some common uses include:
Before attending an auction, it is advisable to obtain pre-approval for auction finance. This involves providing relevant details about your financial situation and the property you intend to bid on. Pre-approval gives you a clear understanding of your borrowing capacity and allows for a smoother bidding process.
Once pre-approved, you can participate in the auction and place your bids. If successful, you will be required to pay a deposit (usually a percentage of the purchase price) immediately.
After winning the auction, you will need to secure completion finance to cover the remaining balance of the purchase price. Auction finance providers offer fast and flexible financing options to ensure timely completion of the transaction.
Auction finance providers understand the time-sensitive nature of auctions. They aim to provide quick turnaround times, allowing you to complete the purchase within the required timeframe.
Auction finance enables you to secure funds quickly, allowing you to act swiftly when desirable auction properties become available.
Auction finance providers offer flexible lending options tailored to your specific requirements, including short-term bridging loans and flexible repayment terms.
With auction finance, you can access competitive interest rates, ensuring that your borrowing costs remain manageable.
Auction finance expands your purchasing power, enabling you to bid confidently and compete effectively at property auctions.
Auction finance providers often have extensive experience in the auction market and can offer valuable guidance and support throughout the process.
As an established commercial finance broker, we have built strong relationships with a wide network of lenders specialising in development finance. This allows us to access a diverse range of funding options, ensuring that we can match your project with the most suitable lender. Our extensive network enables us to negotiate competitive interest rates and favourable terms on your behalf, maximising your chances of securing the funding required for your development venture.
While pre-approval is not mandatory, obtaining pre-approval for auction finance is highly recommended. It allows you to have a clear understanding of your borrowing capacity and strengthens your position as a bidder at auctions.
The time to secure auction finance can vary depending on factors such as the complexity of the transaction, the documentation required, and the efficiency of the application process. However, auction finance providers aim to provide quick turnaround times to facilitate timely completion of the purchase.
Eligibility for auction finance is typically determined by factors such as the property's value, the borrower's financial profile, and the viability of the transaction. Auction finance providers assess these factors to evaluate the risk and determine the terms of the financing.
Yes, auction finance can be used for both residential and commercial properties. Whether you are looking to acquire a residential property, a commercial property, or a mixed-use property at an auction, auction finance providers can offer suitable financing solutions.
Failing to complete the purchase after winning at auction can have serious consequences, including the loss of your deposit and potential legal action from the seller. It is essential to ensure that you have the necessary funds or financing in place before participating in auctions.
Yes, it is possible to refinance auction finance after completing the purchase. Once the property is owned, you can explore long-term financing options such as traditional mortgages or other forms of property finance to replace the short-term auction finance.
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