In a traditional auction, once an investor has made the winning bid against a property, they will pay a 10% deposit and effectively exchange contracts, giving them (in most cases) a 4 week period to complete the purchase. Due to cumbersome processes and turnaround times mainstream funders often don’t have the ability to turn facilities round in the required timescales. This has led to an opportunity for bridging lenders, as they have the ability to react to circumstances much more efficiently and ultimately provide facilities within the required four-week timeframe.
BF24-7 were approached by a property investor who had successfully bid on a property at auction, the problem was that another lender had pulled out of the transaction, which left the client with little over a week to complete or risk losing their 10% deposit. BF24-7 sourced a flexible lender who was able to utilise the valuation that had already been undertaken and complete the purchase for the investor – potentially saving them £1,000’s in the process.