Product of the Week: Auction Finance, the ‘No Valuation Bridging Loan’

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The Enness Bridging Finance team are fully dedicated in providing stop-gap funding solutions to your short-term financial problems. Alongside our established network of industry wide professionals and access to a huge range of finance sources, our brokers take the time to understand your entire financial position to solve your funding requirements.

Short-term bridging finance is a vital product in many circumstances, especially where a swift solution is needed. One such fast-paced circumstance is the exhilarating world of the auctioneering adrenaline junkies. Whilst buying a property at auction is an exciting prospect, there is no doubt that by nature it is a process plagued by financial uncertainty.

At Enness, we understand that due to the speed of auction purchases, mainstream financing is too slow in nature to prove itself as a viable option for buyers. Property bought in the auction room usually needs to be purchased within 28 days of the bid being placed, with a deposit typically being placed on the day. Money needs to be readily available throughout the bidding process and acquisition to ensure that you can meet these financial requirements.

To help you on your auction adventure, our brokers are here to provide a plan from the very beginning of the process, even before the hammer falls. We will help you finance the trickiest auction acquisition, ensure you hit strict deadlines and, of course, help you refinance out the other side.

One way in which we can help you achieve this is through auction finance. Auction finance is a flexible, adaptable product tailored to suit individual needs. It is a crucial product for anyone who wishes to purchase at auction but has their capital tied up in property.

Specialist short-term, no valuation product for auction acquisition purposes

In keeping with this, we work very closely with an institution who specialises in this type of short-term auction finance. The lender is currently offering a product, aptly named the ‘No Valuation Bridging Loan’, specifically targeted at adapting to the fast-paced processes at auction. This is an extremely advantageous offer available exclusively to Enness Bridging Finance.

The ‘No Valuation Bridging Loan’ is extremely time-efficient as it enables a borrower to complete a purchase at auction without the need of a valuation report, upon the following terms with the lender:

  • The maximum loan amount would be for £1.5m
  • The maximum loan to value (LTV) would be 65% Gross without a valuation report
  • The interest rate starts at 0.65% for residential bridging and 0.85% for commercial bridging
  • The borrower must agree to the lender having a valuation performed on the property, which may occur after completion. The lender would pay for this valuation
  • The lender would not charge any additional fees, exit fees or prepayment fees on this product, although it would be subject to their standard 3-month minimum term
  • The lender would seek to agree upon an estimated valuation of the property with the borrower before the auction to provide them with a comfortable bidding limit for the auction

If you are interested in this product, please do not hesitate to get in touch as we would be more than happy to introduce you to the relevant lender and provide expert advice for your circumstances.

Our team have a vast amount of experience in this area, and would advise you to get in contact as early in the process as possible.

As a result, we can ensure you have the best auction finance plan on the market in place to bag an amazing property bargain in the auction room.

 



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