You will require a mortgage to finance your home bid unless you are a cash buyer. The first step to securing a mortgage before attending an auction is to speak to a lender and find out what type of mortgage, they can offer you. Here at ams: we can act as an intermediary; we have access to a portfolio of lenders and will find the best lender for your needs.
Bridging loans serve as a short-term financing option and are frequently utilised by property investors and developers to bridge the financial gap between two transactions, such as the sale of one property and the purchase of another. This financing option is ideal for situations where a borrower needs quick access to funds, as bridging loans are easier to obtain than traditional mortgages. Unlike traditional mortgage lenders, bridging loan providers focus more on the collateral value of the property being used as security than the borrower's creditworthiness.
While bridging mortgages offer a more accessible financing option, they typically come with higher interest rates compared to traditional mortgages. They are also designed to be paid off within a shorter timeframe, which usually lasts for several weeks to several months. Overall, bridging loans provide an expedient option for borrowers who need quick access to funds to purchase a property, make a development project mortgageable, or finance a renovation project, but borrowers should ensure they have a clear exit strategy to repay the loan within the specified term.