What is it?
Auction finance is a bridging loan or short-term loan. It can be arranged quickly which is invaluable when buying a property at auction. It is also good to have your auction finance lined up before you bid, especially as you will need to pay a 10% deposit on the day of purchase.
CPC can work with you to get an Agreement in Principle from a lender (subject to valuation). This ensures that you secure the best funding for your needs, allowing you to bid with peace of mind.
Please note, in some circumstances online valuation may be available. Please get in touch to find out more.
Types of funding suitable for auction purchases:
Light and Heavy Refurbishment Short-Term Loans (STL)
You may wish to carry out works on the property. Depending on the type of works that you intend to complete, we can source light and heavy refurbishment loans to help you successfully complete your project.
A buy-to-let term loan or House of Multiple Occupation (HMO) term loan may be suitable. This would be secured for properties that don’t require extra work to be carried out before being let out.
A recent client success: sourcing finance post-auction
“To invest successfully, property investors need expert support when sourcing finance.
This is just one example of a time when CPC Finance worked to help a client obtain finance in a timely manner to achieve their buy-to-let objectives following an auction.
The client attended the Dedman Gray auction and successfully bid on a property. At the time, the client had finance pending and confirmed this after speaking with CPC Finance on the day, but this finance subsequently fell through. The client called CPC Finance in order to source new funding with only two weeks remaining before completion was due.
CPC Finance worked efficiently to successfully secure the finance and indeed the purchase completed on time.”
When purchasing for investment you should conduct extensive research on the property before the auction. You will want to establish the potential rental income, how desirable the area is and potential local management companies, if you don’t live nearby or don’t have time to manage the property yourself.
There will be a legal pack that you should download and give to your solicitor to review. You should do this before the auction. You may also need to conduct additional searches. Ensure that you have made all the necessary enquires to the local council in regard to planning permission and legal costs that may be associated with them.
Before the auction it may be advisable to pay for a valuation to be carried out. This is to make sure that it is suitable for a mortgage. You could also attend the auction with a formal mortgage offer in hand.
Get in touch today.
+44 (0)1923 655441