{"id":19871,"date":"2019-04-29T08:10:26","date_gmt":"2019-04-29T08:10:26","guid":{"rendered":"https:\/\/www.thehouseshop.com\/property-blog\/?p=19871"},"modified":"2019-04-29T08:16:37","modified_gmt":"2019-04-29T08:16:37","slug":"raising-the-money-needed-to-buy-a-home-at-auction","status":"publish","type":"post","link":"https:\/\/www.thehouseshop.com\/property-blog\/raising-the-money-needed-to-buy-a-home-at-auction\/","title":{"rendered":"Raising the Money Needed to Buy a Home at Auction"},"content":{"rendered":"\n<!-- SEO Ultimate Plus (https:\/\/seoultimateplus.com) - Code Inserter module -->\n<script async>(function(s,u,m,o,j,v){j=u.createElement(m);v=u.getElementsByTagName(m)[0];j.async=1;j.src=o;j.dataset.sumoSiteId='b68b392479b5981b8acf46565e9fe32a0734fc21a1f7c1e60121eaa6ca1a1c64';v.parentNode.insertBefore(j,v)})(window,document,'script','\/\/load.sumo.com\/');<\/script>\n<!-- \/SEO Ultimate Plus -->\n\n<p align=\"justify\"><span style=\"font-family: Times New Roman, serif;\"><span style=\"font-size: large;\">Buying a property at auction can be advantageous in a number of ways. <\/span><\/span><\/p>\n<p align=\"justify\"><span style=\"font-family: Times New Roman, serif;\"><span style=\"font-size: large;\">For one thing, the vast majority of properties that go under the hammer at auction aren\u2019t listed for sale anywhere else. Hence, every property auction represents an exclusive opportunity to pick up a home unavailable through traditional channels.<\/span><\/span><\/p>\n<p align=\"justify\"><span style=\"font-family: Times New Roman, serif;\"><span style=\"font-size: large;\">In addition, purchasing properties at auction means gaining access to unbeatable deals and discounts. Get it right and you could take ownership of a premium property for a price exponentially lower than its actual market value.<\/span><\/span><\/p>\n<p align=\"justify\"><span style=\"font-family: Times New Roman, serif;\"><span style=\"font-size: large;\">The only problem being that in order to buy a home at auction, you need to have the funds to pay for it readily available. You\u2019ll be expected to pay a deposit of at least 10% within the first 24 hours, after which the remaining balance is payable within a couple of weeks.<\/span><\/span><\/p>\n<p align=\"justify\"><span style=\"font-family: Times New Roman, serif;\"><span style=\"font-size: large;\">For obvious reasons, conventional mortgages and traditional secured loans are unsuitable for auction property purchases.<\/span><\/span><\/p>\n<p align=\"justify\"><span style=\"font-family: Times New Roman, serif;\"><span style=\"font-size: large;\"><b>Specialist<\/b><\/span><\/span> <span style=\"font-family: Times New Roman, serif;\"><span style=\"font-size: large;\"><b>Auction Finance <\/b><\/span><\/span><\/p>\n<p align=\"justify\"><span style=\"font-family: Times New Roman, serif;\"><span style=\"font-size: large;\">If you\u2019re able to raise the funds you need to pay for the property independently, doing so can eliminate borrowing costs from the equation. In most instances, however, it simply isn\u2019t a viable option. <\/span><\/span><\/p>\n<p align=\"justify\"><span style=\"font-family: Times New Roman, serif;\"><span style=\"font-size: large;\">This is where specialist auction finance comes into the equation. Provided <a href=\"https:\/\/www.bridgingloans.co.uk\/bridging-loan-calculator\/\">in the form of a bridging loan<\/a>, auction finance is offered as a short-term funding solution to cover the costs of an auction property purchase. Essentially, auction finance is a purpose-built secured lending facility, designed specifically for buying homes and other properties at auction. <\/span><\/span><\/p>\n<p align=\"justify\"><span style=\"font-family: Times New Roman, serif;\"><span style=\"font-size: large;\"><b>How Does Auction Finance Work?<\/b><\/span><\/span><\/p>\n<p align=\"justify\"><span style=\"font-family: Times New Roman, serif;\"><span style=\"font-size: large;\">As with bridging loans in general, <a href=\"https:\/\/www.bridgingloans.co.uk\/bridging-loan-types\/property-auction-finance\/\">auction finance is secured on the borrower\u2019s collateral<\/a>. Typically (though not exclusively) their current home, the value of their asset (or assets) will be used to calculate the maximum loan value available. <\/span><\/span><\/p>\n<p align=\"justify\"><span style=\"font-family: Times New Roman, serif;\"><span style=\"font-size: large;\">Specialist lenders are typically willing to provide loans up to a maximum of 75% of the value of the property being purchased, though this can be taken as high as 90% or even 100% &#8211; in accordance with the scenario.<\/span><\/span><\/p>\n<p align=\"justify\"><span style=\"font-family: Times New Roman, serif;\"><span style=\"font-size: large;\">For the most part, eligibility for auction finance is established entirely on the basis of collateral. If the applicant is able to provide sufficient assets to cover the loan and all applicable borrowing costs, there are no other major requirements to fulfil. A good credit history and strong proof of income may be useful for minimising borrowing costs, but are by no means mandatory.<\/span><\/span><\/p>\n<p align=\"justify\"><span style=\"font-family: Times New Roman, serif;\"><span style=\"font-size: large;\">Bridging finance in general is suitable for purchasing properties at auction as the required funds can be made available within a matter of days. Attend an auction on Wednesday and you could have the money needed to pay for your dream home on the following Monday.<\/span><\/span><\/p>\n<p align=\"justify\"><span style=\"font-family: Times New Roman, serif;\"><span style=\"font-size: large;\"><b>Repayment of Auction Finance<\/b><\/span><\/span><\/p>\n<p align=\"justify\"><span style=\"font-family: Times New Roman, serif;\"><span style=\"font-size: large;\">There\u2019s always a degree of flexibility when it comes to repaying auction finance. In most instances, the repayment date is set approximately six months from the time the loan is agreed. Auction finance is repaid in the form of one lump sum, inclusive of all interest fees and borrowing costs. If preferable, it\u2019s possible to arrange a repayment date up to 18 months or even two years after the loan is issued.<\/span><\/span><\/p>\n<p align=\"justify\"><span style=\"font-family: Times New Roman, serif;\"><span style=\"font-size: large;\">Most lenders also allow borrowers to repay their loans earlier than agreed, with no major penalties or additional levies imposed. <\/span><\/span><\/p>\n<p align=\"justify\"><span style=\"font-family: Times New Roman, serif;\"><span style=\"font-size: large;\">If considering purchasing a property at auction, it\u2019s important to first speak to an independent broker to discuss the available options. A bridging loan is just one of many potential avenues to explore if raising the capital needed to buy your home independently simply isn\u2019t an option. <\/span><\/span><\/p>\n<p align=\"justify\">Article by <a href=\"https:\/\/www.iconquer.com\/\">iConquer<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Buying a property at auction can be advantageous in a number of ways. For one thing, the vast majority of properties that go under the hammer at auction aren\u2019t listed for sale anywhere else. Hence, every property auction represents an<span class=\"ellipsis\">&hellip;<\/span><\/p>\n<div class=\"read-more\"><a href=\"https:\/\/www.thehouseshop.com\/property-blog\/raising-the-money-needed-to-buy-a-home-at-auction\/\">Read more &#8250;<\/a><\/div>\n<p><!-- end of .read-more --><\/p>\n","protected":false},"author":41,"featured_media":19872,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"wl_entities_gutenberg":"","_lmt_disableupdate":"","_lmt_disable":"","spay_email":""},"categories":[7,15,16],"tags":[],"wl_entity_type":[602],"modified_by":null,"_wl_alt_label":[],"jetpack_featured_media_url":"https:\/\/www.thehouseshop.com\/property-blog\/wp-content\/uploads\/2019\/04\/Auction-1.jpg","wl:entity_url":"http:\/\/data.wordlift.io\/wl0502\/post\/raising_the_money_needed_to_buy_a_home_at_auction","_links":{"self":[{"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/posts\/19871"}],"collection":[{"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/users\/41"}],"replies":[{"embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/comments?post=19871"}],"version-history":[{"count":1,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/posts\/19871\/revisions"}],"predecessor-version":[{"id":19873,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/posts\/19871\/revisions\/19873"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/media\/19872"}],"wp:attachment":[{"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/media?parent=19871"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/categories?post=19871"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/tags?post=19871"},{"taxonomy":"wl_entity_type","embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/wl_entity_type?post=19871"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}