Financing 10% auction deposit

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oysterman

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Financing deposits is an old question but, despite searching, can't find much to help with the following:

Friend of mine (public servant; solvent) is thinking of bidding at auction and suspects she'd need to produce a deposit of around €60k if successful.

How to finance it?

She banks with PTSB and has a mortgage on her current PPR with Ulster Bank.

She has plenty of equity in her current property so could presumably draw down the required funds from that mortgage - there would be fees involved so while the rate would be advantageous it looks like an expensive way to proceed.

Does anybody know about Ulster or PTSB's approaches to such lending - would they advance unsecured and any idea of the range of rates?

Or should she simply trawl the market looking for the best rate on an unsecured loan of indefinite duration - and, if so, where to start?

Or should she approach lenders for the new mortgage and make it a condition precedent to placing her business that they advance the 10% immediately from the date of the auction and at the same rate as the mortgage (or is there any hope with that strategy?).

Apologies for the long post - I didn't have time to write a short one....
 
She could do all of the above, but the most straight forward would be to simply look for a bridging loan facility for the auction date with a view to either repaying this from an equity advance or a new mortgage sum after the auction. Because of the unpredictability of auctions it would hardly be in her best interests to pay out too much in advance for something she may very well lose out on at auction. If she is in a good financial position she should be in a position to bargain for a very good rate. It is always advisable for someone going to auction to have loan approval in principal, a survey done and the legal paperwork checked by a solicitor beforehand though.
 
But where should she look for the bridging loan facility she'd need? I remember having the devil's own job less than three years ago getting bridging....

Should she simply approach the bank she runs her CA with (i.e. PTSB)?
 
Anywhere really, because it won't tie her into a mortgage in any case with the same bank, convenience aside. But she might have an easier time getting bridging from a bank she has a current relationship with.
 
.....rising from my sick bed for this one!

Ulster Bank will do a top up loan on her mortgage for €65,000 or an overall loan to value of 80% (whichever is the lower) with no legal fees or outlays; the only expense would be a revaluation of her house at around €100-130. They offer homeloan/tracker rates on the top up and the only potential hold up is if there would be any problems getting the additional life cover. The whole process can take 10 days to 2 weeks.

Sarah

www.rea.ie
 
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