The advantages of pre-agreed auction bridging loans

Property auctions can provide an ideal opportunity for investors to acquire assets below their market value, but the tight timescales involved mean that funding can be an issue.

Where the funding for an auction purchase is required within 28 days, bridging loans offer the ideal solution to provide funding in time for any deadline.

Auction bridging finance at KSEYE can go even further, as we can pre-agree auction finance. This means we can offer indicative terms before the auction takes place, to allow you/your clients to enter an auction knowing that the first steps of obtaining finance are already underway.

So how do our pre-agreed auction bridging loans work? The step-by-step guide below tells you everything you need to know.

Identify the property

Before any property auction, the catalogue will contain information about each lot. Assessing the details of the properties in terms of how worthwhile they are as an investment – either to form part of a property portfolio or to refurbish and sell – is the first step in the process.

Send the details to KSEYE

After you identify the property you/your client hopes to acquire, share the property details with us. Our underwriting team will look at the property and ask any necessary initial questions.

We will give an indicative rate & LTV

After our underwriters have finished their initial assessment, they will send a set of indicative terms. This is the rate and LTV which we will lend at unless something materially changes.

Bid with confidence

With the indicative terms, you/your client can bid with confidence, safe in the knowledge that the process of obtaining finance to meet the auction deadline is underway.

If you win the auction, we will be ready to move forward with the loan

With indicative terms already being issued, all you/your client need to do is complete a loan application form to proceed with KSEYE. Our team act urgently when we know there is a strict deadline that funds are needed by, and we’ll keep you updated every step of the way.

To learn more about KSEYE’s approach to auction finance, visit our dedicated product page, or to discuss a pre-agreed auction bridging loan, contact us today.