Cheval unveils new auction proposition
Bridging lender Cheval has launched a new product targeted specifically at individuals looking to snap-up property at auction.
Its Pre-Arranged Auction Facility, which is available from today, allows borrowers to pre-arrange finance secured against a residential property, or portfolio of residential properties (up to four properties). Using the facility, property buyers can attend an auction, or put in an offer to purchase, and bid with confidence with an agreed maximum level of finance already in place.
Once the facility has been arranged, borrowers need only provide 24 hours’ notice and funds can be released into a pre-agreed bank account, without solicitor involvement. During the term of the facility, the borrower has the ability to draw and repay funds as and when required..
Gavin Diamond, Finance Director at Cheval, said:
“This facility gives bidders the flexibility to buy what they want, even unmortgageable properties.. In one leap it overcomes the recurrent auction problem of bidders being restricted because they are uncertain of the finance that they can call on. They can now focus more fully on getting the property they want at the price they want, rather than being bogged down by the mechanics of obtaining finance.”
Financial intermediaries earn procuration fees on the initial set-up of the facility in addition to each drawdown. The product has a nine month duration and a combination of first and/or second charges are accepted, with a blended interest rate depending on the mix.
The proposition was well-received at a ‘soft’ launch at the Fox & Sons’ South Coast Auction in early July. It is available in addition to Cheval’s standard bridging product, which can be used to purchase property at auction where the security is the property being purchased.