Looking to purchase your first auction property or expand your portfolio? Here you’ll find more information and how we can help you.
Auction finance is a specialised type of short-term funding that is used to quickly secure a property purchased at an auction. Auctions are events where properties are put up for sale, often with the expectation of a fast transaction. Auction finance is designed to provide buyers with the necessary funds within a tight timeframe, usually 28 days, to complete the purchase of a property won at auction.
Our specialist knowledge allows us to support first time and experienced buyers with auction finance, helping you secure the right funding to grow a successful property portfolio.
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Your Path to Successful Property Investment
Auction finance provides a lifeline for those seeking to secure a property within the auction’s tight completion window, typically around 28 days. This financial strategy grants buyers the ability to act swiftly and assertively, ensuring they can meet the auction’s terms and walk away with the property of their dreams.
Pre-approval is when a buyer gets approved for a specific loan amount before attending an auction. This approval helps buyers bid confidently up to the approved amount during the auction.
Auction finance can have higher costs compared to traditional mortgages due to its short-term and fast processing nature. Buyers should be aware of interest rates, fees, and other associated costs.
As a general guideline, lenders often require the rental income to be around 125% to 165% of the mortgage payments. This means that the monthly rental income should exceed the mortgage payment by a certain margin to account for potential vacancies, maintenance costs, and other expenses.
Additionally, lenders may consider your personal income, credit history, and existing financial commitments when determining how much you can borrow. They may also factor in the type of property you’re investing in and its location.
To get an accurate estimate of how much you can borrow with a buy to let mortgage, we assess your individual situation and provide you with a clearer picture of your borrowing capacity based on their specific lending criteria.
While auction finance can be used for various types of properties, not all lenders provide it for every property. Buyers should inquire with their mortgage adviser about the types of properties eligible for auction finance.
Buyers need a clear plan for repaying auction finance. This could involve obtaining a longer-term mortgage, selling the property, or using other means of repayment within the short loan term.
Seeking advice from professionals who understand auction finance is recommended. Mortgage advisors specialised in auction finance can provide insights, help with decision-making and ensure buyers make well-informed choices.
Auction finance is advantageous for its speed and ability to secure properties within tight auction deadlines. It allows buyers to act quickly and seize property opportunities that might not be available through traditional purchase methods.
Keys Mortgages are specialists in auction finance. Partnering with us will equip you with the insights needed to make informed decisions, navigate the intricacies of the auction process and seize opportunities with confidence.
We value your time and understand the urgency of property transactions. Our service takes a streamlined approach to the application process, reducing unnecessary paperwork and ensuring efficiency. We work diligently to expedite your mortgage approval, helping you transition from property search to ownership sooner. Your investment journey is our priority, and we’re committed to making it as smooth as possible.
What makes us Specialist Property Finance Advisers
Secure a mortgage deal today and we'll keep watch on your lender's rates. If a better, suitable deal becomes available, we'll let you know and help you switch.
We have amassed many positive reviews on Google and glowing testimonials from our clients over the years which we are very proud of.
We have excellent relationships with all of our banks and lenders. We're often asked for our opinions on the property market and current mortgage products.
We know that the mortgage market can move quickly, so it can be frustrating to see your lender release a better deal than your current one.
The Keys Mortgages Rate Watch Guarantee is designed to give you peace of mind, knowing you always have the best deal and protect you against missing opportunities of lower rates.
We guarantee to keep watch on your chosen lender’s rates and if a better deal becomes available, we’ll let you know and ask the lender to change product without having to start over (lender restrictions may apply). This is free and included as part of our service.
“I’ve had the privilege of working closely with Cheryl Williams and Amy Zakary over an extensive period, both in my professional role at Precise Mortgages as Sales Director and as a landlord with 32-years experience. In the realms of buy-to-let mortgages locating a broker with genuine specialisation is no small feat.
My confidence in Keys Mortgages is unswerving. Drawing from my experience conducting training at Precise Mortgages, I can vouch for Cheryl and Amy’s exceptional knowledge. Their commitment to delivering a quality service, fused with unwavering expertise, forms the bedrock of their five-star service proposition.”
A mortgage is a loan used to purchase a home. The property you’re buying serves as security for the loan. You make regular payments, which include both principal (the loan amount) and interest, over a specified period. As you make payments, you gradually own more of the property.
There are various mortgage types, including fixed-rate mortgages (interest remains constant), variable-rate mortgages (interest fluctuates), tracker mortgages (linked to the Bank of England base rate), and more. Your mortgage broker can help you find the right option based on your financial situation and preferences.
The amount you can borrow depends on factors like your income, credit history, expenses, and the lender’s criteria. Lenders typically use a multiple of your income or affordability calculations to determine the maximum loan amount.
An agreement in principle (AIP) is a preliminary indication from a lender that you’re eligible for a mortgage up to a certain amount. It’s not a guarantee but can help you understand your budget. A formal mortgage offer is a commitment from the lender to provide the specified amount at agreed-upon terms after a thorough verification process.
Aside from the property’s price, you’ll need to budget for additional costs like arrangement fees, valuation fees, legal fees, stamp duty (if applicable) and potentially broker fees. Your mortgage broker can provide a breakdown of these costs.
A mortgage broker acts as an intermediary between you and potential lenders. They analyse your financial situation, help you find suitable mortgage options, and guide you through the application process. Their expertise can save you time, ensure you’re aware of available options, and increase your chances of securing a favourable mortgage deal.
Send us your enquiry today and one of our friendly advisers will call you back for a free consultation at a time that suits you. Hassle-free with no obligations.
