Winning a property at auction can be exhilarating, but securing financing for a fast-tracked purchase can be a logistical nightmare. This was the situation for one of our recent clients. They faced a common scenario: needing a short-term solution to complete the auction purchase followed by a swift exit from the high-interest bridging loan.
From Swift Auction Purchase to Long-Term Solution
Our client had found a property at auction they were eager to acquire and sought a rapid financial solution to cover the 10% deposit and funds for completion within 20 days of the auction. Our specialist finance team conducted a thorough analysis of their financial profile to understand their circumstances and goals.
The initial objective? Secure a swift financial solution for our client to win the auction property. We achieved this by facilitating a bridging loan – a common solution for an auction purchase. The next objective was to ensure a quick exit strategy within 1 month of completion to avoid the burden of high-interest monthly payments on the bridging loan.
The challenge? Since this was to be our client’s main residence, most residential lenders wouldn’t consider a remortgage application until the property had been occupied for at least six months. Additionally, we needed to find a lender willing to accommodate an exit from the bridging loan, another hurdle for many traditional lenders.
Fast-Track Remortgage to Meet Client’s Needs
Leveraging our extensive market knowledge and strong relationships with lenders, we identified a lender willing to review the case. A senior team member was notified of the application and its time-sensitive nature to ensure it was expedited to meet our client’s needs. Within 24 hours of submitting the remortgage application, a property valuation was booked, which was carried out 3 days later. And just a week after the application was submitted, a mortgage offer was made.
Jamie Roberts, Mortgage Adviser at Henry Dannell, comments: At Henry Dannell, we possess a comprehensive understanding of lender expectations, ensuring a streamlined application process. Close collaboration with the solicitor and our internal specialist finance team allowed us to obtain and deliver the necessary documentation for the lender to expedite the case and complete within one month of submission. This achievement met our client’s objective to successfully transition from a bridging loan to a traditional mortgage, significantly reducing their monthly payments.
Beyond the Loan
This case exemplifies our expertise in navigating complex auction financing and securing exceptional outcomes for clients, exceeding traditional lending limitations.
If you are considering financing for an auction purchase, our specialist team of advisors can assist you in securing a swift solution.
Please note: a bridging loan is a short-term loan secured against your home or property. Your home or property may be repossessed if you do not keep up repayments on your mortgage or any debt secured on it. The Financial Conduct Authority does not regulate some forms of bridging finance. Bridging finance / loan deals may not be available and lending is subject to individual circumstances and status. Please also note: a mortgage is secured against your home or property. Your home or property may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.
