MSP Capital launches new auction finance bridging loan product

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bridging loan for auction purchase

A South Coast-based property finance specialist is championing renewed confidence in UK real estate with the launch of a bridging loan product aimed at the growing property auction market.

MSP Capital’s new Property Auction Finance Loan is specifically tailored to those looking to buy residential properties at auctions with rates starting from 0.54% per month.

The product is available to private individuals, joint borrowers, limited companies and LLPs.

It applies to all residential property types that are vacant, let on AST (assured shorthold tenancy) or in need of refurbishment, with commercial properties considered on a case-by-case basis.

The launch comes amid a huge rise in UK property auction activity. According to the latest EIG report, £539.5 million worth of property was sold at auction in September 2021, a 15% hike in value compared to the same month in 2020.

At the same time, Google search engine data has shown a 50% rise in enquiries about property auctions over the past year.

Chris Wright, auction product lead at MSP Capital, said:

“We’ve been providing bridging loans for many years and, based on lots of conversations with borrowers and prospective borrowers, people are telling us they are really keen for MSP Capital to offer this kind of finance specifically for property auctions.

The stamp duty holiday combined with the migration to online auctions due to the pandemic has spurred many would-be homeowners to choose the auction route over estate agents.

It is a truly dynamic market and not only for investors or developers. Interest in auctions from all kinds of buyers is growing faster than other parts of the property sector.

People are attracted by the speed of potential sales and the ease of bidding online that has opened up in the past 18 months as traditional auctioneers have responded to evolving customer demand for digital-first solutions.”

With timing such an all-important factor when it comes to property auctions, MSP Capital has ensured its Property Auction Finance Loan can be pre-arranged, giving bidders the confidence that funds are in place before the gavel, or auctioneer’s hammer, falls to indicate a binding contract.

In addition, MSP Capital’s streamlined onboarding process helps ensure that funds can be drawn down in less than 28 days to meet the typical auction payment deadline.

As an additional bonus, the new loan product comes with zero exit fee options, fixed legal fees and no valuation fee for properties worth less than £1 million.

Clients can borrow up to 70% loan-to-value on residential properties, with a maximum single property value of £3 million.

Martin Higgins, Managing Director at MSP Capital, said:

“This is all about expanding our product range so we can continue to offer flexible, tailored solutions to our clients.

Our team have worked hard to launch the Property Auction Finance Loan in line with the clear market demand we see.

The product is the latest of several specialist bridging loans we have launched recently, including our Development Exit Loan, which is designed to help developers crystallise their profit and keep moving forward on their next project.

Look out for more product launches next year as we continue to go from strength to strength.”