Auction Finance Limited, the Manchester based lender that focuses solely on providing finance for property professionals buying at auction, is pleased to announce the launch of a new initiative to enhance the confidence of its clients on auction day.

All prospective bidders who apply to the firm with a finance enquiry before an auction takes place can now receive an ‘Auction Promise’.  This document sets out the details of the lot which is under consideration, summarises the conditions of the loan that the client would need to complete a purchase on the property, and constitutes an ‘in principle’ agreement from Auction Finance Limited to advance the necessary funds if the client’s bid is successful.

Scott Hendry, New Business Manager for Auction Finance Limited explains:

“The Auction Promise is a step up from the traditional ‘decision in principle’.  It gives our clients additional reassurance that if their bid is successful then the funding they need to complete will be there in plenty of time. 

“An Auction Promise, which is valid for 30 days from the date of issue, provides them with that extra level of certainty.  They know that, as long as they stay within the maximum purchase price agreed on the document, we will be ready and waiting to advance the funds they need within 24-48 hours.  This is particularly useful in the current market, where shorter completions periods are becoming the norm.  If you win a lot and only have 14 days to find the finance then you might struggle, but with an Auction Promise you can have it all agreed before you even place a bid.”

Croft Property Holdings Limited recently purchased at auction after receiving an Auction Promise, and a representative said of the service:

“We’ve dealt with Auction Finance Limited on many occasions and they have always delivered for us.  Nevertheless, it is still reassuring to have something down in black and white when you visit an auction and I’m sure that this new service will be valued by many Auction Finance Limited customers, particularly those who are new to the world of property auctions.”