AUCTION FINANCE
WHAT IS AUCTION FINANCE?
Auction Finance is a specialised short-term loan designed to buy auction properties. It offers quick funding to secure a purchase, often within tight deadlines. This finance type benefits investors who need immediate funds, as auctions require fast payment upon winning a bid.
Auction Finance typically covers a significant portion of the purchase price and must be repaid through refinancing or selling the property, usually within 6 to 12 months. It’s a crucial tool for property investors in competitive auction environments.
Key Benefits
PURPOSE & USE
Fast funding for auction purchases
Ideal for property investors
Covers a major portion of the price
Enables competitive bidding
FEATURES & BENEFITS
Quick approval and disbursement
Short-term financial solution
High loan-to-value ratios
Flexible repayment options
CONSIDERATIONS & RISKS
Requires swift repayment
Higher interest rates
Risk of overbidding
Need for an exit strategy
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WHY CHOOSE CLEVER COMMERCIAL?
Experienced. Trustworthy. Tailored.
Clever Commercial is an award-winning brokerage with over 30 years expertise in providing bespoke property financing solutions. Competitive rates, flexible criteria, and unrivalled service. Build your future – partner with us.
Our unwavering commitment to being an indispensable part of our client’s journeys and our belief in their potential have earned us their trust as reliable mortgage brokers.
FREQUENTLY ASKED QUESTIONS
What is Auction Finance?
Auction Finance is a short-term loan used primarily to purchase property at auction. It provides rapid access to funds, enabling buyers to meet the quick payment terms typically required in auction settings.
Who is Auction Finance suitable for?
It’s ideal for property investors and developers who frequently purchase at auctions and require immediate funds to secure their bids, especially when traditional funding methods are too slow.
What are the key risks of Auction Finance?
The main risks include higher interest rates than traditional loans, the pressure of fast repayment schedules, and the potential financial strain if the property doesn’t sell or refinance as planned.
How quickly do I need to repay Auction Finance?
Repayment terms vary but are usually between 6 to 12 months. The loan is typically repaid by selling the purchased property or refinancing with a longer-term financial solution.
OUR CLIENTS THOUGHTS
RECENT TESTIMONIALS
Marc worked over many months to help me find the right financial product to suit my complicated refinancing project. Having identified the right product, Marc then worked for many more months to help me get the financing completed. I had so many issues that I had to face and at every obstacle Marc was on hand to help me to resolve it, and very often took it upon himself to do it for me. Marc went for beyond just brokering a good deal for me, he was my partner in making this happen. I could not have done this without his support. Thank you Marc for being so calm and patient and having faith when I had lost mine!
I. Knight
Marc has provided our company with excellent service and advice. He has vast experience and knowledge, and is able to advice on the most suitable lenders given our requirements.
Especially during the legal stage of the lending process, he facilitates and communicates with lenders in a way we would not be able to ourselves.
We would certainly not be where we are without his services. Highly recommended.
M. Dunn
The service provided for my bridging loan was second to none. The support I received was very professional and generous.
I would highly recommend Clever Commercial to everyone and anyone who needs a professional, caring and competitive rate for it’s loan or any kind of finance.
D. Dezfull
Marc has provided our company with excellent service and advice. He has vast experience and knowledge, and is able to advice on the most suitable lenders given our requirements. Especially during the legal stage of the lending process, he facilitates and communicates with lenders in a way we would not be able to ourselves. We would certainly not be where we are without his services. Highly recommended.
P. Strøm