Lancashire Mortgage Corporation launch property auction finance
A new service has been launched by specialist lender Lancashire Mortgage Corporation designed to assist buyers who purchase their property at auction.
Buying properties at auction has been growing in popularity in the UK in recent years, as people look to exploit potentially cheaper prices and quicker sale times.
Now Lancashire Mortgage Corporation has launched Auction Finance specifically for the market.
It is thought the new venture will lend £100 million in the first year.
The business will allow finance to be secured during or after auctions, and transfer funds within 48 hours.
“The success of auctions is largely dependent on the rapid, often same-day, availability of funds from credible lenders who understand the special requirements of this market,” commented Irene Thomas, operations manager at Auction Finance.
“If purchasers are able to access funds or even increase their original funding line while at an auction, fewer lots will be withdrawn. This is good news for auctioneers, vendors and purchasers alike.
“As well as providing property professionals with cash, we will also be able to provide expertise and support throughout the auction process.”
The auction market has been going from strength to strength in recent years.
Some 37,523 lots have been offered for sale so far this year, compared to 18,727 in 1998, whereas the value of property sold at auction has increased from £1.4 billion to £7.2 billion in the last ten years.
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