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Date: 28 January 2022

Author: Rachel Bartlett

Our newly launched bridging loan product, aimed at the growing property auction market, has secured one of its first bidding successes.

Developer Remarkable Refurbs has used the Auction Bridging Loan to buy a flat in a prime location near the seafront in St Leonards, East Sussex.

The one-bedroom, ground-floor property needs extensive refurbishment and was sold for £126,000 through Clive Emson Auctioneers.

Having identified the flat’s potential, Remarkable Refurbs turned to our bridging loan to pre-arrange funding and secure a credit-backed offer so they could place their bid with confidence.

Launched at the end of 2021, the auction bridging loan is specifically tailored to help clients looking to buy residential properties at auctions, with rates starting from 0.54% per month. The product comes with fixed legal fees, zero exit fee options and the promise of no valuation fees for properties worth under £1 million.

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“I was concerned about timescales so it was great to be dealing with a company well versed in turning offers, valuations and legal documents around quickly and answering enquiries very fast.”

Managing Director of Remarkable Refurbs Ltd

Interest in the new bridging loan comes as the national auction market continues to see substantial growth in popularity.

The trigger was last year’s stamp duty holiday combined with the migration to online auctions due to the pandemic.

Clive Emson Auctioneers Director and Senior Auction Appraiser Sam Kinloch said: “We continue to embrace the latest technology to bring our property and land auctions to the widest possible audience – with prospective purchasers able to bid from the comfort of their own homes anywhere around the world.

“Therefore, we welcome any initiatives by service providers – such as that by MSP Capital which has launched a new specialised product to make it even easier for bidders to get funding – recognising how our industry is becoming an increasingly important way of buying and selling.

“Although we are unable to endorse specific products, we are gratified to learn of new developments designed specially to complement our work and to offer an extended range of choices to customers.”

Chris Wright, our auction product lead here at MSP Capital, said:More and more buyers are choosing the auction route over estate agents. To meet their needs for loan finance, we have designed our auction bridging loan as a specialist product to help bidders as they make their preparations for auction day, which can sometimes be a stressful, ‘against the clock’-type experience.

“It is really encouraging that so soon after launch we have been able to help a developer such as Remarkable Refurbs secure their desired lot.

“It’s all about providing clients – whether they are a developer, private individual, joint borrower, partnership or company – with the added confidence to place that all-important bid there and then knowing the necessary funds are in place.”

Auction Bridging Loan

Product Summary

  • Rates from 6.49% per annum
  • Up to 70% LTV
  • No valuation fees payable for properties under £1m, and fixed legal fees of £2k.
  • Dedicated Account Manager
  • Loan term from 6-12 months
  • Southern England with other geographical areas considered
  • Maximum single property value £3m
  • Available to individuals, joint borrowers, Limited Companies and LLP’s
  • Completion within 28 days

With over 14 years of experience in property surveying and finance, Chris Wright, is ready to help you buy your next property at auction.

or call Chris on 01202 743400

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