Bridging Finance for Auction Purchases

Bridging Finance for Auction Purchases is short-term finance used to bridge the gap until long-term finance is secured or the asset is sold. Bridging can be used for many different circumstances, such as refurbishments, developments, breaks in the chain or to secure an asset quickly. 

Our client purchased a property at auction that needed a bridging loan to pay for it. As bridging finance is quicker to arrange than a traditional mortgage, it meant the client could meet the completion time scale given by the auction house, thus avoiding any auction penalty fees.

GO Financial Services placed the case with a lender that would accept a first-time landlord, who also wanted to refurbish the property. The lender had a quick turnaround time to meet the auction completion deadline.

The product had no ERC’s so once the work was completed and the clients were ready, GO Financial Services advised the client on how best to capital raise on the refurbishment, and convert on to long-term funding using a Buy to Let mortgage.

If you have a project that you would like to discuss please don’t hesitate to get in touch