As buying a property at an auction is often a much quicker process than traditional purchasing, it makes sense to plan out your finances in advance to prevent any roadblocks.
To get started with the auction finance calculator and find out the details of your loan, you’ll first need to enter some key information. Try to ensure you’re entering these figures as accurately as you can, as it will help to generate as accurate a result as possible. The information you’ll need includes:
Auction finance is an excellent way of securing property from an auction house in a quick and easy manner. However, it’s important that you follow the correct steps in acquiring a loan to ensure you can make the most of a property’s potential without any delays. Here are the steps you’ll need to take:
Research and planning
Search online auction catalogues to find a target property. Research contributing factors like how safe the area is, how much work needs to be done to the property and the value of comparable properties nearby. You need to ensure a property you’re interested in is a good investment for both you and a lender.
The next step includes credit checks, identification checks and an online property assessment. This is to give you peace of mind that finance options will be available to you and at what rate.
Secure the property
Once you have your pre-approval in place, you’re free to start bidding at auction. If successful, you will need to first pay 10% of the purchase price immediately, along with any auction fees. You’ll then be given up to 28 days to finalise the purchase through a solicitor.
Much like traditional purchases, properties bought from an auction house can greatly vary in price from building to building. At Positive Commercial Finance, we ensure that all our customers are catered for, no matter how grand their ventures may be. As such, we offer auction finance loans from £30,000 to as much as £100 million.