Bridging finance helps a client purchase at Auction

Sometimes when properties are in an Auction, there is usually a reason why for example, damp issues, structural issues, title issues etc. Our client wanted to purchase a property at auction that had a moderate damp issue, meaning a standard Buy to let product wasn’t suitable as it wasn’t habitable for tenants. Therefore, the solution was a bridging loan to purchase the property within the auction timescales. Once the property was in possession the client repaired the damp issue to make the property suitable for tenancy.

The property was then remortgaged onto a standard term mortgage to repay the short-term finance.

The benefit of this strategy is that the property was able to be acquired much cheaper than should they of purchased something ready to go, this benefits the clients longer term by being prepared to look at the opportunity in the property and realise a better return on funds invested.