The product applies only to properties purchased at auction and the announcement comes recently after Mayfair revealed its launch into Scotland.
The new product includes:
• 1.5% arrangement fee
• 1.25% interest per month
• No exit fee
• 9 months term
• Residential 70% LTV net, Interest to be rolled up on top of the 70% for the term
• Commercial 65% LTV net
• Free legals
• Free valuations
Commenting on the new auction finance product, Divisional Director Yasin Patel said purchasing at auction could be a daunting experience and the product had been launched to give clients confidence and peace of mind.
“They can enter the auction knowing that they have a highly experienced finance company right behind them who will give them a first class service, be clear and transparent from the outset regarding what they can borrow, who will cover the cost of the valuation and the legal fees and on top of this, not charge an exit fee,” said Yasin.
“We have listened to what clients want and are confident that what we are offering fully fits the bill.
“With this specially tailored product, more buyers will now feel they have the tools at their disposal to venture into the auction market and benefit from the many advantages that buying at auction can provide.”
Also commenting on the product, Alex King, Executive Director of SPF Private Clients, said: “Free legals and valuation will be an attractive perk for some consumers and at 70% net this product has its place.”
“For those developers that have more cash to put down there are cheaper alternatives, yet when buying a property at auction picking a lender that can hit your deadline is just as important as gearing or pricing.”
John Waddicker, Director at Positive Commercial Finance, added: “Free legals and valuation is obviously a plus point, and whilst these have previously been on offer by the challenger banks, it’s good to see a true specialist lender offering the same.”
John Webb, Director at The Loan Partnership, said the free valutation fee, free legals and no exit fee were a real win-win situation for the purchaser.
"Clients are always looking at costs and Mayfair would certainly be at the forefront when looking at day one cash outlay," said John.
"We all know how expensive valuations can be. The benefit of no sting in the tail must also be good for the client. Well done Mayfair!"
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