Properties bought at auction generally require a 5% deposit on the day while signing a legally binding contract to pay the remaining 95% within a 28-day period. This is where the bridging loan for auction comes in. Bridging loans are a preferred option as they help to bridge a gap until a long-term mortgage or sale can be secured. Bridging finance for auction is available for land, commercial and semi commercial buildings, residential and buy to let properties.
It is a common misconception that all auction buyers are cash buyers. In-fact, even buyers with the cash generally will opt for a mortgage to keep their equity in the bank.
If you are looking to purchase at auction with a mortgage, we have a partner company who can talk you through the process. Bridging is a short-term solution for buying at auction and is usually paid off once the property is either resold or refinanced.
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If you have questions regarding buying or selling at auction or even have a general unanswered question, please fill out the form below and we’ll get back to you shortly, and remember, no question is too small.