Residential property auction finance

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    When it comes to buying a home under the hammer, you’ll need to act swiftly to secure the deal. Our residential property auction finance services can provide the quick funding you need to ensure you can complete the purchase.

    Welcome to One, auction property finance for residential properties

    Are you seeking a fast, affordable finance solution to finalise your auction purchase? Well, the team at One can help you secure the best auction finance deal by connecting you to the most experienced brokers.

    As experts in property finance and bridging loans, we will help you access faster finance for your auction purchases. With our personal service, tailored advice and access to our extensive network of lenders, we’ll work with you every step of the way to ensure the best possible outcome.

    For short-term finance advice, please get in touch today.

    What is residential property auction finance?

    Property auctions require the winning bidder to pay a deposit immediately after the auction and complete the purchase within a short timeframe, typically within 28 days.

    Residential property auction finance can provide the necessary funds to complete the purchase quickly and efficiently, allowing you to secure the property and avoid missing out on the opportunity.

    Typically, the loan is secured against the property being purchased and has a shorter term than a traditional mortgage, often ranging from 1 to 18 months. Interest rates for residential property auction finance can be higher than conventional residential mortgages. Still, they offer a valuable option for those looking to purchase property at auction who may not have access to other financing options.

    How does auction finance work for residential property?

    When you have found your dream home or residential investment property at an auction, you’ll need to act quickly to secure it. Auction finance provides a faster and more flexible solution for investors and individuals looking to make auction purchases.

    Here are the steps to purchasing a residential property with auction bridging finance:

    1. Find a property worth bidding on at auction
    2. Apply for auction finance from a specialist lender
    3. Wait for the lender to assess the property value and suitability
    4. Get a decision in principle from the lender
    5. Start your bidding at the Auction House
    6. After a winning bid, you’ll need to pay the deposit immediately
    7. Once you have paid a deposit you will have 28 days to complete the purchase

    Our auction finance services for residential purchases are tailored to your specific needs. If you have found the ideal property and have an auction coming up, then it’s best to act fast. By working with our wide connection of specialist auction finance brokers, you can secure the loan you need in a matter of days, sometimes faster.

    Eligibility criteria for residential auction property finance

    If you’re considering buying property at auction, then auction house finance can be a helpful way to raise funds quickly. However, as with any type of borrowing, there are eligibility criteria that you’ll need to meet.

    Here’s what most auction finance lenders will be looking for:

    • UK resident
    • Over the age of 18 years
    • Good credit history – some lenders may have a minimum credit score
    • Proof of income and employment status
    • Details of existing debts or financial commitments

    We will ensure you are matched with the right broker who can navigate you through the auction finance eligibility criteria. With specialist support, your application can be tailored to meet the specific requirements for residential auction finance.

    It’s worth noting that auction finance providers may have different eligibility criteria than traditional lenders, such as banks or building societies. With our broad market knowledge, we can guide you to the right specialist who can find the best deal for your needs.

    Interest rates on residential auction property finance

    The interest rates on residential auction property finance can vary depending on the specific lender, the borrower’s creditworthiness, and the loan amount.

    In general, interest rates on auction finance tend to be higher than those for traditional mortgages due to the increased risk involved in the short-term nature of the loan. The interest rates can also be affected by the loan-to-value (LTV) ratio, which is the percentage of the property’s value that the loan covers. Typically, the higher the LTV ratio, the higher the interest rate.

    When working with the property experts at One, we’ll ensure you have a complete understanding of the different interest rates from each lender so you can make the best financial decision.

    What types of residential properties can auction finance be used for?

    Auction finance can be used for various types of residential properties that are sold at auction.

    These properties typically include:

    • Houses – including tenanted
    • Apartments/flats
    • Bungalows
    • Maisonettes
    • HMOs (House in Multiple Occupation)
    • Listed buildings
    • Converted buildings or properties with planning approval
    • New builds

    Auction loans and their associated terms can vary among lenders, the specific property, your financial situation and local regulations. The team at One can assist in placing you with the most suitable lender to ensure you get the best deal for your particular purchase.

    Why choose One to source your residential auction finance

    The team at One have extensive property industry experience, and we understand that auction finance loans can be complex. If you have a successful bid, you want the security of knowing that the auction loan has been pre-approved.

    We can help you secure short-term finance for your property-buying needs by connecting you with a specialist auction finance broker. We’ll support you throughout the process, from application to property completion.

    With the right amount of research and specialist support, you can be confident in your auction bridging finance application and gain a clear understanding of the costs and repayment terms involved.

    Contact us today for support with your auction finance needs.

    Frequently asked questions about residential auction finance

    If you are planning to buy a property at auction and want to understand more about auction finance beforehand, then take a look at some of our frequently asked questions below.

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    About One Commercial

    One Commercial have over 100 years of property experience. At One Commercial we like to use a “one stop shop” approach, utilising the whole market to support our clients in a wide range of property related finance.Their job is to make sure that they have done the hard work by matching your situation to the right commercial lender and for the best deal.

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