Time can often be tight when it comes to a property purchase and speed is the main advantage bridging finance can offer compared with high street banks.
Independent buyers seeking to find a bargain at auction are turning to bridging loans to meet the 28 day deadline for completion set by most auction houses. Once they own the property they are able to re-mortgage in order to repay the bridging loan.
A 10% deposit of the bid price will be required for auction day. If the client does not have the 10%, we can raise the funds by releasing equity on any existing properties prior to auction.
Many clients looking at purchasing an auction property require 100% of the bid price plus renovation costs and this can be achieved by using both the new auction house and the clients existing house as security (subject to equity).
Criteria Market Value 100% LTV (with additional security) 70% LTV (without additional security) Valuation report required on all secured properties