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Frequently asked questions about auctions

by | Jul 19, 2019 | Brokers, Client Lenders, Clients, News

Do you need finance in place before you go to an auction?

You will need to pay a 10% deposit on the day of purchase, so if you do not have the cash available, make sure you have finance lined up. We can work with you to get an Agreement in Principle from a lender for the best finance to suit your needs. This will allow you to bid with peace of mind.

You may want to pay for a valuation to be carried out on the property prior to auction to ensure it is suitable for a mortgage and attend the auction with a formal mortgage offer.

What kind of finance can you use for auctions?

There are a variety of options available including:

  • Short term (STL) or bridging loans including refurbishment loans, both light and heavy. Read our FAQ on refurbishment loans for more information
  • Secured loans
  • Remortgaging to release equity from a property
  • Buy-to-let loans
  • Development finance for land

Read our quick guide to auction finance for more information about auction finance options.

What else should I do to prepare for an auction?

Before the auction, download the legal pack and provide this to your solicitor for review. There may be additional searches you need to do. Make sure you have made all the necessary inquiries to the local council regarding planning permissions and know what legal costs might be associated with them.

If you would like more information about preparing for an auction, read these handy tips.