Auction finance is a specialized form of financing designed to help buyers secure properties quickly at auction. When properties go to auction, buyers are typically required to complete the purchase within a tight timeframe, often within 28 days. Auction finance offers a fast-tracked pre-approval process so that bidders know how much they can spend ahead of time and can secure funding rapidly if they win a bid. This type of loan is usually short-term, ranging from a few months to a few years, and is intended to be either paid off quickly or refinanced into a longer-term financial solution.
Interest rates for auction finance tend to be higher than for conventional mortgages due to the short-term nature and increased risk associated with auctioned properties. This financing option is ideal for investors looking to renovate and flip properties or for those unable to secure traditional mortgage approval due to the condition or type of the property.
Understanding Auction Finance for Quick Property Purchases" explains how investors can secure rapid, short-term funding to buy auction properties, covering eligibility, terms, and strategic advantages for swift real estate acquisitions.
Auction finance is a type of short-term loan specifically designed for purchasing properties at auction. It allows buyers to act quickly with funding that aligns with the fast-paced nature of auctions.
Auction finance can be arranged very quickly. Typically, we aim to provide a decision within 24 to 48 hours, with funds ready to be released shortly thereafter to meet auction deadlines.
The loan amount can typically range from 70% to 75% of the purchase price or the property's value. Higher amounts may be possible with additional security.
