What is Auction Finance?
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.
How does Auction Finance work?
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.
Why Choose Keys for Auction Finance?
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.
Auction Finance FAQs
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.
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.