Buying property at auction can be terribly exciting, especially if you are new to the game. It is important though to not get too carried away, to have a clear budget and plan of action in place, and to never overbid and deviate from your original plan. This is why it is vital that you have already put in place a bridging loan prior to attending an auction, as it will allow you to have peace of mind that the detail is in place for you to complete a purchase in time.
In most cases, a property bought at auction must be completed within 28-days of the successful bid. For many people, this is just not possible without a bridging loan of some sort, as it is an awful lot of money to have spare. It is also important to understand that many properties that are up for sale at auction will most likely require significant work in the form of refurbishment or restoration.
A bridging loan allows you to push through the purchase of a property at auction, as long as you have an exit strategy that allow you to pay back the bridging loan, whether this is an immediate sale of the property, or a future plan once the restoration work has taken place. Bridging loans offer some level of flexibility that can be extremely helpful in cases where a person wishes to buy property at auction.
For more information about bridging loans for auction properties, contact the Central Mortgages team on 01277 630 183 or firstname.lastname@example.org.