Borrowers that require a very quick turnaround to secure their next property investment will be pleased to learn that LendInvest has completed its first official auction finance loan for a new customer purchasing a property at auction in Hertfordshire.
The specialist lender launched its first distinct auction finance product in December to help provide funding within tight timeframes.
In this case, the borrower needed to complete their loan application within one week, after placing the winning bid for a property at auction in December.
The borrower was scheduled to complete their purchase in the last week of January. But with a week to go, their lender changed its mind to lend to them, citing a valuation discrepancy that could not be resolved before the 28-day deadline expired.
After approaching LendInvest, the borrower moved swiftly from initial enquiry to credit approval, and loan completion was achieved in five business days.
The loan is based on 75% net loan-to-value and lasts for nine months with an interest rate of 0.94% per month.
Matthew Tooth, chief commercial officer at LendInvest, said: “For borrowers buying at auction, speed is the number one requirement. Important too is the certainty of funding.
“Problems like the one our borrower experienced aren’t unusual, particularly when buying dilapidated or uninhabited properties at auction, but they shouldn’t be insurmountable. This is where lenders like LendInvest can distinguish themselves from mainstream counterparts by taking a fast but practical approach to getting loans agreed to quality borrowers within tight timeframes whatever the challenges.”