It is crucial to calculate the total cost of borrowing to ensure the profit margin, if you are developing the property, is sufficient to cover the finance charges. These brokers can match you with the right lender and guide you through the documentation.
Auction Bridging Loan Short Term Property Finance for Quick Property Bids
You will need proof of identity, details of the auction property, and evidence of your exit strategy. Property developers also rely on these loans to fund refurbishment projects that require rapid completion.
The loan is usually interest rolled up, meaning you pay the interest at the end of the term rather than monthly. You borrow a percentage of the anticipated property value, typically ranging from 50% to 100% of the purchase price, depending on the lender and the auction conditions.
Auction Bridging Loan Short Term Property Finance for Quick Property Bids
The loan is usually structured to be repaid within a short period, often within 12 months, aligning with the timeframe required to sell an existing property or secure permanent finance. Lenders focus primarily on the value of the property being purchased and your exit strategy rather than your long credit history.
More About Auction bridging loan
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