Auction Bridging Loans
Auction bridging loans are a type of short-term financing that is specifically designed to help property buyers purchase properties at auction. These loans typically bridge the gap between the auction purchase and longer-term financing or property sale.
Buying a property at auction can be a great way to get a good deal, but it can also be a challenging and competitive process. Auction sales typically require the buyer to pay a deposit on the auction day, often within a few hours of the sale. Buyers typically have a set period, usually 28 days, to complete the property purchase. This can create a tight timeframe that may require more work to meet with traditional financing options.
Auction bridging loans can give buyers quick access to funds to pay the deposit and complete the property purchase. These loans are typically secured against the property being purchased and are based on the property’s expected value once the purchase is complete. The loan can be repaid once the property is sold or refinanced.
Auction bridging loans can be useful for property buyers who need quick access to funds to purchase a property at auction. However, these loans can carry higher interest rates and fees than traditional mortgages due to their short-term nature and higher risk. It’s important for borrowers to carefully consider the costs and risks associated with auction bridging loans and to work with a reputable lender or broker who can provide clear and transparent information about the loan terms and conditions.
How can Sterling Commercial Finance Help?
At Sterling Commercial Finance, we’ve been helping businesses access funding for over 20 years. Get in touch with the team today to see how we can help your business.