MSP Capital launches auction bridging product

MSP Capital has introduced a bridging loan product aimed at the property auction market.

The lender’s new offering is tailored to private individuals, joint borrowers, limited companies and LLPs looking to buy residential properties at auctions, with rates starting from 0.54% per month.

It also comes with zero exit fee options, fixed legal fees, and no valuation fee for properties worth less than £1m. 

Clients can borrow up to 70% LTV, with a maximum single property value of £3m. 

It applies to all residential property types that are vacant, let on AST, or in need of refurbishment.

Commercial properties are considered on a case-by-case basis. 

“We’ve been providing bridging loans for many years and, based on lots of conversations with borrowers and prospective borrowers, people are telling us they are really keen for MSP Capital to offer this kind of finance specifically for property auctions,” said Chris Wright, auction product lead at MSP Capital (pictured above).

“The stamp duty holiday, combined with the migration to online auctions due to the pandemic, spurred many would-be homeowners to choose the auction route over estate agents.

“It is a truly dynamic market — and not only for investors or developers.” 

Chris claimed that interest in auctions was growing faster than other parts of the property sector. 

“People are attracted by the speed of potential sales and the ease of bidding online that has opened up in the past 18 months as traditional auctioneers have responded to evolving customer demand for digital-first solutions.”

The finance provider’s auction loan can be pre-arranged, and funds can be drawn down in less than 28 days to meet typical auction payment deadlines.  

Martin Higgins, managing director at MSP Capital, added: “This is all about expanding our product range so we can continue to offer flexible, tailored solutions to our clients. 

“Our team have worked hard to launch the property auction finance loan in line with the clear market demand we see. 

“The product is the latest of several specialist bridging loans we have launched recently, including our development exit loan, which was designed to help developers crystallise their profit and keep moving forward on their next project.” 

MSP Capital divulged that it will be launching further new products in 2022.

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