Are you in the process of trying to buy a property? Then you might want to check out a housing auction. Such auctions make a wonderful starting point for someone who wants to help make the most of their home buying prowess, with deals often turning up that you would never find on the market normally. However, affordability is still an issue. If you lack the funds to throw at the house from the moment that you arrive, then convincing those involved to sell to you can be tougher than it has to be. One option that you have, though, is to use a bridging loan.
With a bridging loan, you can make sure you can afford the full property without much issue. You will be expected to make a 10% deposit on the day of the purchase, and then pay up the rest of the offer within a 28-day period. Naturally, that can be hard to put into place without having a huge sum of money just sitting in the bank.
For those without a massive chunk of change to throw at a house auction we recommend that you look to use a bridging loan. This will help you to meet the 28-day payment deadline, and ensure that you can get moved into your new home in the shortest space of time possible.
The speed is often the main reason that you would go to an auction in the first place. Those who sell to you are expecting to be paid pretty fast, so failing to do that is only likely to bring some considerable issues for both parties to the table. How can you avoid such issues, then? What can you do if you want to make sure you get it done fast?
Bridging loans: solving house auction disputes
Part of the reason why a bridging loan is so useful is that the decision is made much faster with this kind of finance. It comes with a much smaller deadline for payment than the average loan, so you often find that decisions are made faster. Getting a ‘normal’ mortgage from a bank can often take a lot longer than 28 days. This means that you could miss out on the chance to secure your property.
With a bridging loan, though, you can avoid such a frustrating issue. You can then push through that bargain sale and make sure you have the opportunity to move further forward with your dream property. Since it can be set up nice and quickly, you can avoid any issues with failing to meet the imposed deadline.
So, if you see a dream home at house auction that you want to buy, you no longer need to walk away with frustration. You can now secure the short-term finance needed and pay it off accordingly, allowing for you to ensure that you have no need or reason to miss out as you continue to move forward.