"By using auction finance to purchase property at an auction, then refinancing the property purchased at a later time, borrowers are often able to get a great deal."
Being able to get funding on a short notice when you want to buy property at an auction is important; otherwise, you may miss out on purchasing the property you want. Unfortunately, traditional funding typically takes a long period of time, making it difficult for people to secure the type of funding that they need to buy property at auction. The best way to make sure that you have the funds you need when buying property at an auction is to rely on auction finance.
Also known as bridging or short-term finance, auction finance makes it possible for borrowers to get the money that they need to purchase property in a short period of time. Almost any type of property can be purchased using auction finance, even if the property is not currently habitable. This is another feature that sets this type of lending apart from others that are currently available, as most require the property to be habitable. Both residential and commercial property can be purchased using auction finance, and they make it easy for landlords to buy property, as well.
Both business owner-occupiers and investors can use auction finance to purchase commercial property. This may include warehouses, leisure centres, pubs, offices, and shops. When wanting to buy commercial property, it is often important to move quickly so that the borrower is able to beat any other people who are interesting in purchasing the property, and auction finance is generally the fastest way to get the necessary funding.
By using auction finance to purchase property at an auction, and then refinancing the purchase at a later time, borrowers are often able to get a great deal on a piece of property without having to worry about how they are going to arrange a traditional mortgage. Refinancing the property later makes it possible for the borrower to get a great rate.
There are some conditions for purchasing property using auction finance and also for refinancing the property later, but since each lender has his or her own set of rules and regulations, it is wise for the borrower to talk to the particular lender about any restrictions that are in place. While some lenders require landlords to own their property for more than six months before refinancing the loan, others do not require this.
Using auction finance is a great way to buy property quickly and often at below market value. Being able to purchase property when it is at the right price can make a huge difference in a person's success or failure as a landlord, and, for this reason, working with a company who provides auction finance is important.
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