Investors looking to buy property at auction often need auction finance. The main benefit of auction finance is the speed at which funds can be delivered. MT Finance is often able to make lending decisions within hours of an initial enquiry and funds can be released in a matter of days.
What’s more, we will work closely with you to ensure you go into an auction fully prepared and at a competitive advantage over others. If you have identified a target property and set yourself a maximum level you are willing to pay, we can review your loan options at an early stage, prior to auction and provide you with indicative terms. You can then go into an auction room and bid with confidence, knowing your finance will be delivered in time for completion, with minimum fuss.
Auction finance features:
- Rates from 0.75%
- 1st & 2nd charge loans
- Loans from £50,000 – £10,000,000
- Up to 70% LTV
- Terms from 1-24 months
- Residential, commercial and semi-commercial property
- No up-front fees, no exit fees, no ERCs
- No personal guarantees required
- No credit scoring
We will also take a view on CCJs, defaults, and arrears and do not require a minimum credit score, accounts, or proof of income – instead, we focus on the property and your future plans. Our streamlined process includes no lengthy application forms, allowing us to cut through delays and offer auction finance exactly when, and how, you need it.
With no exit fees, early repayment or exit fees, MT Finance will always help you access the most competitive rate, tailoring a solution to your financial requirements.
To find out more about auction finance, or if you have a project you wish to discuss, contact one of our auction finance experts on 0203 051 2331 or fill in our contact form and someone will be in touch with you shortly.
How can auction finance help?
Driven by attractive prices and the speed at which a deal can be executed, property auctions are appealing to a wider audience including property investors, who are increasingly visiting auction rooms in a bid to find a good deal. Property investors can benefit from buying a property at auction below market prices, typically within a 28-day time frame. They can also benefit from contributing smaller deposits of around 10%.
However, an investor wanting to take advantage of these opportunities can often face barriers when it comes to raising funds. Either they are unable to get a mortgage because the property requires major work, or they find it virtually impossible to secure a mortgage in the tight 28-day time frame due to lengthy application processes.
These circumstances have caused auction buyers to rethink their financial arrangements and seek alternative methods of funding, with auction finance offering a solution to the funding gap.
One of the main benefits of auction finance is the speed at which funds can be delivered. Where a mainstream bank may take several months to put together a loan for a borrower, MT Finance is often able to make lending decisions within hours of initial enquiry so funds could be released in less than two weeks.
What’s more, we will work closely with you to ensure you go into an auction fully prepared and at a competitive advantage over others.
If you have identified a target property and set yourself a maximum level you are willing to pay, we can review your loan options at an early stage, prior to auction, and provide you with indicative terms. You can then go into an auction room and bid with confidence, knowing your finance will be delivered in time for completion, with minimum fuss.
MT Finance’s top tips for property auctions
1.Watch other auctions online.
It’s a good idea to get an understanding of how auctions work before you bid at one.
Take your time to find the right auction. Use a site like www.propertyauctionaction.co.uk. Once you have selected your auction, get hold of the catalogue and spend time studying it.
2. Keep an open mind.
Auction properties are often in a poor state of repair which means that with a little vision you could secure a bargain. View properties before you bid. Once you’ve picked a few properties from the catalogue, visit in person at the open days. This will allow you get a feel for its proportions and a sense of the work that needs to be done.
3. Get your finances in place.
The main issue with financing a property purchase at auction is finding a lender that can meet the deadlines required. If you like a property you need to act quickly.
4. Get all the legal paperwork checked before the auction date.
Getting the paperwork checked ahead of the sale can save many headaches further down the line. Properties can have legal issues which may affect the value of the property and the ability to raise finance. On the day of the auction arrive in plenty of time with your photo ID, proof of address and 10% deposit – you will need these if you are successful.
5. There are no right or wrong ways to bid at auction.
The key thing is to be seen and/or heard by the auctioneer.
6. Beware of excess fees.
One of the great things about buying at an auction is that you can avoid agent fees and a lot of paperwork. However, there are still some rates and fees involved in the process that could still catch you unawares.