With more investors than ever before now buying property online, specialist lender Together has teamed up with Bamboo Auctions, one of the UK’s first online property auction marketplaces, to offer short-term auction finance for all lots listed on the site.
Bamboo Auctions work with a number of auction houses across the UK, including Clive Emson Auctioneers and SDL Auctions, enabling investors to buy and sell properties online, rather than through the traditional auction rooms.
The new collaboration means that investors acquiring property through Bamboo Auctions will be eligible for short-term auction finance from Together, which offers a much faster time to completion than high-street lenders; ideal for investors who require a very quick turnaround to secure the property they want to purchase at auction.
Very few mortgage lenders, amid tougher borrowing rules, are able to provide purchasers with the necessary finance required within the relatively short 21-28 days completion period as is the case at auction, which is one reason why many auction goers turn to short-term finance lenders for an instant bridging loan.
Auction finance, available throughout the UK, is generally available for property purchases varying from £20,000 to £5m, although these loans do come at an inflated cost.
But while short-term finance is a more costly way to raise funds to purchase property, it does provide buyers with confidence to purchase property at auction knowing that they will have the funds in place to complete a transaction, before eventually obtaining a more attractive deal from a conventional mortgage lender.
Chris Baguley, commercial director at Together, said: “As well as having dedicated representatives in nearly all the major auction houses in the UK, giving us a presence at over 300 property auctions every year, we also recognise the digital shift in the industry, whereby people want to be able to shop online for auction properties.
“In order to maintain our position as a leading auction finance provider, we’re delighted to be working with Bamboo Auctions to ensure that the online auction marketplace can benefit from our specialist auction finance offering.
“Regardless of whether you buy in the auction room or online, it’s common practice for auction buyers to have just 28 days or less to complete on a purchase, so buyers and investors need to act fast to secure their dream lot. This partnership will allow users of Bamboo Auctions to easily access funding, with on the spot decisions so they can bid with confidence, making the process as streamlined as possible.”
Robin Rathore, founder of Bamboo Auctions, described the new collaboration between his firm and Together as a “natural partnership”.
He commented: We are proud to be working with Together as the auction market grows through greater use of online auctions.
“Auction is an underutilised method of sale, but by making it more accessible and democratic, we aim to increase the size of the auction market. Our partnership with Together will help us to achieve this. When purchasing online, some buyers will require access to short-term funding and by working with Together we can signpost them to a reputable and trusted auction finance provider.”