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AUCTION FINANCE
The two main differences to buying a property at auction versus a property on the market are that the buyer must exchange contracts on the day of the auction, and also has a 28-day deadline for completion. Hope Mortgage Solutions refer to third parties that specialise in auction finance and work within the strict time-frame needed to ensure you have the funds in time for completion.
Why use auction finance over a traditional mortgage?
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Traditional mortgage lenders cannot guarantee to have funds released to you within the 28-day timescale, auction finance lenders work very quickly to get funds released to you, reducing the risk of missing the deadline.
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The property may not be suitable for traditional mortgage lenders which is why it is being sold at auction, the short-term finance can be put in place for the duration of the work being carried out.
Like bridging finance, lenders will need to see a clear exit strategy is in place, this may be the sale of the property or re-finance onto a traditional mortgage. Hope Mortgage Solutions arrange the mortgage for the exit strategy alongside the auction finance.