LendInvest completes first official auction finance loan
LendInvest has completed its first official auction finance loan for a new customer purchasing a property at auction in Hertfordshire.
The borrower needed to complete their loan application within one week after winning a property at auction in December and was scheduled to complete their purchase in the last week of January.
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.
The borrower moved quickly from initial enquiry to credit approval with LendInvest, and loan completion was achieved in five business days.
Matthew Tooth (pictured), chief commercial officer at LendInvest, said: “For borrowers buying at auction, speed is the number one requirement.
“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.”
The loan was based on 75% gross loan-to-value and lasts for nine months with an interest rate of 0.94% pcm.
The borrower also managed to obtain a 50% discount on their valuation fee.
Tooth added: “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.”