However, if you do not have large cash reserves to call upon, how do you buy one of these bargain properties?

The answer for many people is with bridging finance.

There are two instances where bridging finance can help you purchase the dream property you have found.

Your existing home is yet to sell

Many people who look to buy auction properties hope to do so with the proceeds from the sale of their existing home.

When the property market was in rude health, this was not much of a problem.

However, the property sector is going through a difficult period at the moment and it could take you several months or even years to sell your home.

This is not an option when it comes to auction properties because somebody else will more than likely bid for the house if it is available at an attractive price.

Rather than missing out, you can bid for the house and pay for it with a bridging loan.

Bridging loans can be secured against your existing property, giving you the funds you need to buy the auction property.

The loan is then repaid once you have sold your current abode.

Bridging finance is useful in such circumstances because they are quick and easy to arrange. With auction properties, you must pay the ten per cent deposit and then pay off the balance within 28 days.

Many bridging loan companies can have the funds in your bank account within 14 days of you applying, giving you ample time to pay off the balance.

In such instances, an open bridging loan is the best option, as there is not set repayment date, giving you plenty of time to sell your home and raise the funds needed to repay the loan.

It is important to note that open bridging loans come with higher interest rates and the longer it takes to repay the funds, the more you will eventually have to pay.

You can use the auction property as security

Many people who buy properties at auctions do so with the intention of renovating them and selling them on at a higher price.

Rather than using their current home as security, they use the property they are bidding for.

If you are interested in such a project, you can borrow the money needed to purchase the house plus extra to renovate it.

Again, an open bridging loan may be the best way forward, as there is no way of knowing how long it will take to sell the property once renovated.

Before you come to any decisions, it may be a good idea to seek bridging loan help to ensure you understand how bridging finance works, what interest rates you can expect to pay and whether an open or closed bridging loan is the best way forward.

A lack of cash does not need to be a barrier to you obtaining the auction property you have set your heart on.

Bridging loans are commonly used to fund auction property purchase and they can work for you too, so why not pick up the phone and start dialling bridging loan telephone numbers to see what you can get.

Some will use bank loans, while others do rely on their savings. However, bridging loans are one of the most common ways to finance such purchases.

What are Bridging Loans?

Bridging loans are a short-term financial solution taken out by both consumers and businesses. There are two types of bridging loan you can take out – open and closed. Open bridging loans have no set repayment date, so they give you more breathing space in terms of raising the money you need to pay it back. However, interest rates on open loans are usually higher due to the greater risk the lender is exposed to. Closed bridging loans, on the other hand, do have a set repayment date but have lower interest rates.

To learn more about how these loans work, you could seek bridging loan help from a financial adviser and ask them how the loans work and whether they are the best way forward.

How can bridging loans be used to purchase auction properties?

Bridging loans can be secured against either your existing property or the property you intend to purchase. In the first instance, you need to have a certain amount of equity in your home and how much equity you have will determine how much you can borrow. Buyers who go down this route borrow the money, pay off the balance and then repay the loan once they have sold their existing property. Many people who choose this option take out open bridging loans due to the fact that there is no set repayment date to meet. With the housing market going through a turbulent time, it could take longer than 12 months to sell a property, so having no repayment date to meet gives extra room for maneuver.

In the second scenario, you can take out a loan secured on the property you intend to buy. Many people who do this renovate the property and look to sell it on at a higher price. Again, with the housing market in the state that it is, there is no way of knowing how long it will take to sell the property, so an open bridging loan with no repayment date may be the best way forward. As bridging loans are financial products, you need to understand exactly what they are and how they work. One way forward could be to phone bridging loan telephone numbers and speak to providers themselves about their products, the interest rates they charge and how much you can secure against your current home.

It is also important to explore other forms of finance, as it may transpire that there are more suitable borrowing options for your personal circumstances.

Whichever avenue you choose, you do not have to miss out on the potential bargains available to you at property auctions. Whether you want to move house or take your first steps in the world of property development, you can secure the finance you need.

Designed to be taken over a short period of time, a bridging loan is there to help you out during times where things are just a bit too tight to make that large purchase, or emergency bill payment.

At Positive Finance our specialty is bridging loans, and whether you need £10,000 or £100,000 we’re here to lend a hand when you need it most.

Unlike many bridging loans, we don’t just lend to those in the middle of a property transaction. You can take a bridging loan with us for any purpose, and most loans can be taken out over anywhere between one and twelve months.

We even offer flexible payment terms including deferred interest payments, and payment holidays giving you full control of how you borrow.

We also protect you from one of the biggest expenses borrowers often run into; Brokers fees! Most demand inflated prices for their advice, and because they’re paid a commission for recommending you a lender, you can’t always be sure they’re giving you the best advice.

Because we’re a principle lender you’ll be borrowing direct from us. That means no additional costs, and no middlemen to deal with.

Need Money in a Hurry?

The other major advantage of us being a direct lender is the application process is far quicker. They’ll be no time wasted sending application forms backwards and forwards, and you won’t need to chase us up for a decision.

When you apply we’ll be able to give you a decision within hours, not days or weeks so you’ll be able to get the cash you need, when you need it.

The first thing you’ll want to do is find out how much it’s going to cost you to borrow what you need using our Bridging loan calculator.

All you need to do is enter the amount of money you want to borrow, our current interest rate, and the length of time you want to pay it back, and you’ll be able to instantly see exactly how much interest you’ll be repaying in all.

We’re also very transparent about our fees. You’ll pay a legal fee of £995, and a variable administration fee to process your loan, but because we know the last thing you need when you want to borrow money is up-front fees, we simply add the charges to your loan so you can repay them at the end of your term.

Application is simple too. You can either call one of our friendly advisors who’ll walk you through the whole process one step at a time, or you can fill in our online application form right here!

So there it is…

Simple, affordable, and flexible bridging loans, direct from one of the most trusted bridging loan specialists in the UK!

First time buyers will be required to pay 1% tax on properties worth between £125,000 and £250,000 and 3% on properties over £250,000 when the tax exemptions come to an end.

Wendy Evans Scott, president of NAEA says: “ First-time buyers are key to a healthy property market. We hope to see the number of people completing the purchase of their first home continuing to increase through February and March, as many first time buyers are keen to purchase their first home before tax exemption deadline.

“However, it is impossible to predict what impact the end of the tax exemption will have on first time buyers, particularly those on very tight budgets of under £250,000 for whom 1% tax could be disastrous.

“The government will need to monitor the sales closely and consider other action to support the fragile first time buyer market.”

The sales to first time buyers rose a little in November and December from 19% of sale per branch to 21^% according to figures from the NAEA.

The number of first time buyers still only represents a small percentage in the overall sales figures. The number hit a three year low in October with them accounting for just 16% of sales.

This lender introduced the buy-to-let in December and will be offering the new products from the 17^th January 2012.

The new products they are putting in place are a two-year tracker with a rate of 4.09% with a £1,495 fee, available up to 75% to remortgagers and purchasers and a two-year tracker at 3.49% with a fee of £1,495 available up to 60% LTV to purchasers and remortgagers.

As well as those they are also offering a two-year fix at 3.39% with a 2.5% fee available up to 60% LTV (loan to value) for buyers and remortgagers and a two-year trackers at 2.99% with a 2.5% fee, available up to 60% LTV (loan to value) to remortgagers and buyers.

Miguel Sard, managing director of Abbey, says: “We have introduced percentage fees on some new products in response to feedback.

“We continue to see strong rental demand and expect these intermediary exclusives to be well received by brokers and their clients.”

Buy to let lending was said to have picked up in the 4^th quarter of 2011, despite this lenders believe prime and buy to let lending will fall a little within the next quarter.

In a previous survey it was expected that there would be a slight increase in the availability of secured credit to households, but this didn’t meet expectations as there was no change in the final quarter of 2011.

The availability of secured credit is expected to rise a little in the first quarter of 2012. Many lenders are looking to increase their focus on high LTV lending and new products such as high LTV mortgages, which will take collateral from house builders to reduce risk.

The deposit required from first time buyers has stayed the same within the past few months, and is normally around 20%. Although monthly payments have dropped to approximately 12.3% of a person’s income, this is the lowest it has been since January 2004.

Last year 13.3% of a first time buyer’s income was spent on interest. The number of first time buyer’s is quickly dropping, falling 10%over the month from 18,000 to 16,400 in October.

Paul Smee, CML director general said: “Despite the fall in lending in October, it is possible that we will see signs of increased activity by first-time buyers in the early months of next year, as we approach the end of the governments stamp duty concession at the end of March.

“ The underlying picture of the market overall, however, is level, albeit a low levels of lending activity.”

Research carried out by Zoopla has found that the average house price has dropped by £19,500

The average percentage at which the house prices have dropped is 7.4%. When this is taken into account the discount is nearly £3 billion less than originally asked for. This is because sellers want a quick sale and become more realistic to the current market.

House prices have dropped the most in Glasgow at 9.1% followed by Newcastle at 8.9% and then Bolton at 8.8%.

The most common areas that have experienced the price cuts are the north of England and Scotland.

Even London has been affected by these price cuts. 32.6% of properties on sale in the capital have had their asking prices reduced. The reduction is only 6.43% which is low compared to other places throughout the UK.

Nicholas Leeming, business development director of Zoopla.co.uk, said:

“With the current economic uncertainty and difficulty buyers face in finding funding, it is no wonder that sellers are having to reduce prices in order to encourage sales. And with the latest economic forecasts for 2012 looking decidedly gloomy, sellers may have to reduce their expectations further if they are serious about making a move.”

The average interest rates charged on a 2 year fixed rate buy to let mortgage in September 2011 was 4.86% compared to 5.78% back in September 2010. This research was carried out by Defaqto.

Within this same period, the five year fixed rate buy to let deal fell from, 5.94% to 5.69%, the three year deal fell from 6.03% to 5.56% and the two year base rate tracker for buy to let also fell from 5.01% to 4.11%.

The average fees for a buy to let mortgage also dropped.

Buy to let mortgages are still more expensive compared to a residential home-loan. Defaqto showed that the 2 year fixed rate for a residential mortgage is 3.52% and for 5 years this is 4.25%.

The plans are in place for these mortgages to be distributed through brokers, but are available in 10 branches throughout the UK already.

The state bank of India should be ready to start selling their residential products in 2012. They also have the permission from the financial services authority to offer regulated mortgages.

These will be launched through branches then passed on to mortgage advisors and IFA’s.

The buy to let mortgage loan is set to a tracker rate and is available up to 60% LTV at the base rate plus 3.99%. This loan is available from £50,000 to £1.5m and has an interest option only. There are no early repayment charges. It will cost £1,990 in arrangement fees and has a £150 booking fee.

The Indian government owns 59.41% of SBI, the bank has offices in 32 countries and is the 50^th largest bank in the world. The Indian bank also offers investment products and savings accounts in the UK