Auction finance is a short-term loan solution tailored for property investors looking to purchase property or land at an auction. Unlike traditional mortgages or loans, auction finance is designed to be quick and flexible, addressing the tight deadlines often associated with auction purchases.
When a bidder wins a property or land at an auction, they’re typically required to pay a 10% deposit immediately and the remaining 90% within 28 days. This tight timeframe can be challenging for investors to secure traditional financing so applying for auction finance can allow them to confidently bid at auctions, knowing they have access to the funds required.
In essence, auction finance bridges the gap between winning a bid and securing long-term financing, ensuring investors can capitalize on opportunities without delay.
The quick turnaround required for auction purchases means it can be challenging to secure funding to purchase an auction property or land within the timescales. The auction loan from Novellus fills this gap with its quick completion time.
Other Novellus strong points include:
Our auction finance lending solutions can be used to purchase the following types of properties – subject to due diligence, valuation and legals:
There are a few points for a borrower to consider carefully before deciding to take out a bridging loan for an auction purchase:
Bridging loans generally take 1-2 weeks to process from the application being made which means funds would be available to make the 28-day deadline on an auction purchase.
The quick application process is the main advantage of a bridging loan. However, there are several other advantages, which include the following:
To help discover the approximate costs involved with bridging finance use the online bridging loan calculator for guidance.
Novellus offers a stress-free application process. For more information simply call us today on 0203 397 4871 or fill out our form below.