Auction finance

MILLET

I am in the process of taking out a further advance on a property i have which is about to be rented out. In the mean time I have seen a flat that is going to auction in 2 weeks time. The mortgage broker says it will take between 4-6 weeks to get my money from the property i am mortgaging.
If everything went perfectly i would be able to bid at auction for the flat. Put down the 10% deposit on auction day and get the further advance which would pay for the flat outright within the 28 days between signing and completing.
However we all know things are not that simple and although I know I will be able to get the further advance it might not arrive in time for completion of the flat i want to buy.

I have heard of bridging loans but haven't the foggiest on where to begin and even if they are my best route.

Any suggestions gratefully received.

Flashmanchop

Bridging is expensive - but if it is the only method....

I have used Auction Finance .co.uk in the past.

In my mind, aslong as you have weighed up the pro and cons of everythign coming togetehr, or not and you are happy it may be worth it.

eddddy

MILLET wrote: »

I am in the process of taking out a further advance on a property i have which is about to be rented out. In the mean time I have seen a flat that is going to auction in 2 weeks time. The mortgage broker says it will take between 4-6 weeks to get my money from the property i am mortgaging.
If everything went perfectly i would be able to bid at auction for the flat. Put down the 10% deposit on auction day and get the further advance which would pay for the flat outright within the 28 days between signing and completing.
However we all know things are not that simple and although I know I will be able to get the further advance it might not arrive in time for completion of the flat i want to buy.

I have heard of bridging loans but haven't the foggiest on where to begin and even if they are my best route.

Any suggestions gratefully received.

Hi Millet

If you google "auction finance" you will find lots of companies that advertise what you are looking for.

But expect to pay very high fees and interest. And it will probably be a commercial loan, so you get no consumer protection.

Don't forget to consider all the worst case scenarios in your risk assessment... for example, you buy the flat at auction, and then your mortgage company finds a problem and decides not to lend against your other property.