The alliance between Bridging Finance Solutions (BFS) and Smith and Sons continues to grow as demand for auction properties gathers pace.
The firms, both Wirral based, have enjoyed a strong reciprocal working relationship for many years with buyers keen to secure short-term funding at auction to achieve a positive outcome for their property deal. During 2014, BFS has provided funding for multiple properties available at Smith and Sons auction, on behalf of local investors and developers.
Steve Barber, Managing Director of Bridging Finance Solutions said: “Bridging finance is an ideal form of lending in an auction scenario, the rules of auction stipulate that a 10% deposit must be left on the day and the full balance made within 28 days. In the majority of cases, lenders will struggle to arrange a mortgage within this time which is where bridging finance comes in. We also fund a considerable number of auction property refurbishment projects which traditional lenders will not fund until works have been completed. We find that those looking to secure a property will come to us at varying stages of the auction process both before and after and indeed on the day itself.”
Chris Johnson, Auctioneer and Managing Partner at Smith and Sons added: “There is definitely a more positive mood in the auction room. Investors are returning to purchase houses in need of refurbishment and those with an investment angle. Quite often our customers will look to short-term finance to make sure they are able to secure that property. We work with Bridging Finance Solutions as our bridging provider as we have a continuing strong relationship. They are incredibly proactive and they have FCA accreditation, which to my knowledge, makes them unique within Merseyside.”
Chris added: “Bridging has always formed a part of the auction process, yet historically there has been a wider assumption that the process is expensive. However, this really isn’t the case now and is just one more on cost to take into consideration when preparing a residual valuation. In reality it does what it says on the label and offers bridging facilities that allows customers to get where they need to be. As the auction market grows with new customers joining us on auction days, more enquiries will be made in terms of finance and hence the joined up approach between ourselves and BFS will continue to gather momentum”.