LendInvest has completed its first official auction finance loan for a new customer purchasing a property at auction in Hertfordshire.
The online mortgage lender’s auction finance loans, which were launched in December 2016, are designed for borrowers who need their deals to be fast-tracked to ensure certainty of funding within tight timeframes.
In this instance, the borrower needed to complete their loan application within one week. The borrower had won a property at auction in December and was scheduled to complete their purchase in the last week of January. However, with a week to go, their lender changed its mind to lend to them, citing a valuation discrepancy that couldn’t be resolved before the 28-day deadline expired.
After approaching LendInvest, loan completion was achieved in five business days.
The loan is based on 75% net LTV and lasts for nine months with an interest rate of 0.94% pcm. By choosing Lendinvest, the borrower received the fast-tracked service they needed, as well as a 50% discount on their valuation fee.
Matthew Tooth, chief commercial officer at LendInvest, said: “For borrowers buying at auction, speed is the number one requirement. Important too is the certainty of funding. Problems like the one our borrower experienced aren’t unusual, particularly when buying dilapidated or uninhabited properties at auction, but they shouldn’t be insurmountable.
“This is where lenders like LendInvest can distinguish themselves from mainstream counterparts by taking a fast but practical approach to getting loans agreed to quality borrowers within tight timeframes whatever the challenges.”
