With a growing number of investors turning to auctions to buy property, online mortgage lender LendInvest has decided to launch its first distinct auction finance product to help brokers and borrowers prepare for the first auctions of 2017.
The quick turnaround of exchange and completion at auction means that a growing number of purchasers are turning to specialist lenders for an instant loan, and LendInvest’s auction finance product is designed for borrowers who need their deals to be fast-tracked by their lender to ensure certainty of funding within tight timeframes.
Key features of the new auction finance product, which is available on loans ranging between £75,000 to £7.5m up to 75% LTV on a term of up to 12 months, include a 50% discount on valuation fees and no exit fee.
While using a short term finance lender is a more costly way to buy property, it does provide buyers with confidence to purchase property at auction knowing that they will have the money in place to complete a transaction. What’s more, it also buys the purchaser more time to source the best mortgage deals from conventional mortgage lenders, at a more attractive borrowing rate.
Matthew Tooth, chief commercial officer at LendInvest, said: “A significant proportion of the deals that brokers bring to us are for purchases agreed at auction. In these cases, our brokers’ clients too often struggle with the same issue: their lenders can’t meet the demands to get their loans completed in time.
“Our auction finance borrowers receive a fast-tracked service to give them the comfort they need to know that if we say we’ll lend, we’ll do so in the short space of time available.”