If you want to buy a property at auction you really must have the finance in place to enable you to bid with confidence, knowing that you can complete on the purchase having a secure source of bridging finance behind you.
Genie Lending specialises in putting in place Auction Bridging Loans and fast short term auction finance for our clients.
Your Auction Purchase Guide
Before going to auction, talk to us and be clear about the Auction Bridging Finance that will be available to you. Never commit to buying a property without having your auction bridge loan in place. If you contract to buy at auction and don’t complete on time, then you will lose your deposit – an expensive business and a risk easily avoided by taking appropriate action early in the day.
Talk to us well in advance and we will guide you through the maze of auction bridging finance.
Here are the headlines
- A Maximum of 75% LTV is available BUT if you have other properties that can be added as security you can borrow up to 100% of the price of the property you wish to buy at auction.
- Buying Below Market Value is a challenge but can still be achieved. We will need to discuss this fully with you as early as possible.
- For land, expect the LTV ratio to be lower, probably 50%.
- Finance can be raised on the valuation of the new property you are buying and repaid either when you sell or refinance into a mortgage.
- Finance can be raised either on an existing property until it is sold to pay off the Auction Bridging Finance or the new property is sold or refinanced to clear the loan on your existing property.
- Interest rates are calculated on a monthly basis with rates from 0.65 – 1.75%.
- There will also be up front Arrangement fees as well as Legal and valuation fees.
- Some or all of the upfront charges and interest payments can potentially be retained from the initial advance or rolled up to the end of the loan so you have nothing to pay until the redemption date.
On the day of the auction you will require a deposit (usually 10%) that is non-refundable and needs to be paid on the day the sale is agreed. When the gavel drops at auction and you’re the winning bidder, you are exchanging contracts.
Completion will normally follow after 28 days giving you a narrow time frame for us to work with you to finalise your Auction bridging loan. This is where we will be able to assist you by selecting the most reliable lenders at the best rates.
Be guided by our Business Finance Managers. A great bridging loan is not always about the best or the cheapest rate; lender flexibility and reliability are absolutely critical. Our years of experience in bridging loans are invaluable with critical choice.
Surveys and valuations will take place as soon as possible after the auction has finished so act quickly and keep us fully advised of the auction outcome.
We deliver a rapid service for supplying auction Bridging finance so will deal with lenders that specialise in quick completions to ensure your money is available in time for completion.
The Genie Lending promise is to guide you through the auction finance process and make sure your bridging loan is the most suitable for your circumstances. Auction Bridging finance is arranged at the best terms for you. Please note that the “best terms” does not always mean the “best rate”. Where appropriate we will advise you on options that may be more flexible, more reliable and give you greater long term benefits than just a cheap interest rate. Ultimately though the decision will be yours and we will merely present options from which you choose the best bridging loan for you.
As well as dealing with all the major UK Bridging Loan Lenders we also deal with niche as well as private lenders with whom we often have exclusive arrangements. With Genie Lending’s bridging loan process you can be sure that, as an independent broker, you will have the widest choice of Auction Bridging finance options available. Loans start at £25,000 but there is no real maximum limit.
Once you actually own the property, we will be here to make sure the right exit finance is in place.
To begin your application, please contact us with an outline of what you require. Complete our Enquiry Form and get the ball rolling or, if you prefer, just call us on 01202 868843.
We look forward to helping you with your Auction Bridging Finance deal.