Ensure you complete the 28-day deadline with fast finance

At KSEYE, we help you secure your auction finance with fast reliable funding

Buying an auction property can be one of the most affordable and profitable ways for investors to build their property portfolio. Winning your first property at auction can be a landmark moment for any investor; however, the fall of the hammer is only the beginning. In the UK auction market, the transition from winning to closing the sale usually happens within 28-days.

Whilst market conditions can fluctuate, with interest rates and buyer demand changing, property auction deadlines remain the same. This poses a challenge for investors who need to bridge the gap between the speed needed for the auction purchase and the cautious pace of traditional lending.

The funding shortfall risk

Many clients use debt when purchasing a property at auction. This could be simply due to an investor being unable to purchase a property outright with their own funds (otherwise known as a cash buyer) or because using debt frees up their capital for further investment elsewhere.

However, many traditional lenders are unable to meet a 28- day auction deadline. This can put an investor at risk of losing their deposit and result in them being unable to secure the property if the required funding is not in place by the completion deadline.

This is where KSEYE’s bridging finance is a useful tool for auction investors, as it offers quicker access to funding than traditional finance, ensuring auction deadlines are met and deposits are not at risk due to an inability to access the required finance on time.

Using a bridging loan for auction success

A key reason why property investors may struggle is that they are trying to raise the funds needed for their project through traditional means. The property they are purchasing at auction may require refurbishment works such as a new kitchen or bathroom to bring the asset up to a mortgagable standard. In these instances, traditional finance may not be available until the works have been completed. A 12 month bridge provides time for the client to purchase the asset and carry out the required works before then moving on to exiting onto suitable longer- term finance.

Also, if a client’s intention is to quickly renovate and sell the asset for a profit, longer- term finance may not be the most suitable option as there are exit fees involved (otherwise known as ERCs – Early Repayment Charges). With KSEYE’s bridging products, there are 0% exit fees, so the client is free to sell the asset at any time within the loan period – ideal for quick property flips!

Auction purchases requiring speed and/or refurbishment works are where KSEYE shines. By using human underwriters rather than relying on automated ones, we look at the potential and exit strategy when deciding on your bridging loan.

How KSEYE can help you secure auction properties

Succeeding at an auction requires more than just winning the bid; it requires focus, quick funding, and a lending partner who understands the complexities and human side of a property project.

By focusing on the long-term potential of your property and providing underwriters who understand the speed needed for auction properties, our team at KSEYE will help you move from the hammer falling to completion with confidence, regardless of how the market fluctuates.

If you’re looking for assurance of funding pre-auction, feel free to get in touch with your BDM today. We’ll be happy to provide indicative terms so you can confidently bid at your next auction and can then move at speed to ensure your completion deadline is met once you’ve successfully secured the property.