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Auction finance is a type of short-term funding that can be used to buy property at auction. It’s so easy to get and has many advantages, but it may not be right for everyone. Here are the benefits, drawbacks, and how it works in more detail.

What is Auction Finance and how does it work

Auction finance is a term used for short-term loans taken out to purchase items at an auction. The money is lent specifically for the purchase, and the loan is typically repaid within a few months. This type of financing is ideal for buying auction property, as it allows you to bid on properties even if you don’t have all the money saved up.

The benefits of using Auction Finance

There are several benefits to using auction finance when buying at an auction. First, it’s very easy to obtain, since all you need is a good credit score. This means you can get the money you need quickly, which is essential when bidding on a property.

Additionally, auction finance is a relatively low-cost way to borrow money. This is because the loan is typically repaid within a few months, so the interest charges are lower than with other types of loans. Finally, auction finance can be used to purchase any type of property, whether it’s a house, a piece of land, or a commercial building.

The drawbacks of using Auction Finance

While there are many benefits to using auction finance, there are also some drawbacks. First, the interest rates on auction finance loans are typically higher than with other types of loans. This is because the loan is repaid over a shorter period of time, so the lender is taking on more risk.

Additionally, if you don’t repay the loan in full, you may be required to pay a penalty. Finally, if you default on the loan, the property you purchased with the loan can be repossessed.

If you’re thinking of bidding on a property at auction, auction finance is a great option to consider. It’s easy to obtain and relatively low-cost, and it can help you purchase the property you want. Just be sure to weigh the pros and cons carefully before deciding whether it’s the right choice for you.

Auction Finance Interest Rates

A deposit of 25-30% is usually required and rates will be dependent on your circumstances.

Ready to get started with your Auction Finance? Contact a member of our expert team today.