Auction Finance

Auction Finance

Our auction bridging loans are a rapid funding solution for when buying your next property at auction. We finance purchases including Buy To Lets (BTLs), residential, mixed-use, commercial, agricultural & land.

We act fast, with instant decisions and can facilitate bridging finance drawdown for auction properties in as little as 3 days.

For a no obligation quote apply online or arrange a call with our experts today.

Auction Finance Lending Criteria

Loan to value (LTV) 80% maximum
Loan term 1 to 24 months
Loan amount £26,000 up to £25m
Interest options Rolled-up, retained or serviced
Interest rates From 0.44%
Decision Immediate decision in principle
Completion Up to £200k in 3 days
Up to £25m in under 2 weeks
Early repayment fees None
Availability Secured on assets in UK & Europe
Individuals, Companies, SPVs
No credit & adverse credit considered
Exit strategy Sale or refinance

We offer fast, innovative, flexible auction bridging finance bridging to businesses and individuals throughout the UK. Our loans, which are secured on property or land, enable clients to quickly raise funds to acquire property.

The property and financial markets move quickly, and opportunities come and go in the blink of eye, making it difficult for businesses, investors, landlords and home buyers to acquire their next property or expand their portfolio.  

This is compounded by the added complexities of buying a property at auction, wherein buyers are required to complete the purchase of properties won within 28 days. Buying a property at auction has many advantages though, most properties sold in this way are offered at below market rate prices enabling buyers to achieve great investment opportunities. 

When it comes to financing properties bought at auction, the best way to secure funds is by using auction bridging loans.

Key benefits of using bridging loans for auction properties

In comparison with other types of finance, auction bridging loans have many benefits. There are many reasons that a borrower may choose a bridging loan over a more traditional form of financing.

These include:

Property Auction Finance Is Fast To Arrange

Traditional loans such as business loans, commercial and residential mortgages, often take weeks or even months to arrange. Auction finance can be arranged and wired to a bank account in as little as 48 hours, and often an agreement-in-principle happens within 24 hours.

Although these loans typically have higher interest rates than other forms of lending because the repayment terms are so short (usually around 3-24 months), they often work out to be the most cost-effective form of borrowing. 

Property Auction Finance Is Flexible

Auction finance loans have more flexible lending criteria than other types of funding, meaning that they can be approved and transferred to the borrower within a very short space of time.

Where traditional loan application processes are concerned with borrowers credit histories, income and loan affordability, auction finance lenders are more interested in the value of the property you are purchasing and seeing you have a solid exit strategy (how you plan to repay the loan). This offers buyers more opportunity to create their own favourable conditions for borrowing. 

They can also be secured on all types of properties - including those that other lenders will not offer lines of credit on.

How bridging loans help you buy your next auction property

An auction bridging loan is frequently used to buy property at auction specifically because they can be set up so quickly (usually within 3 - 7 days) and are available for sums that range from as low as £26k up to £25m or more. 

When buying property at auction, 10% of the total property price is required as a deposit on the day of the auction, as soon as the buyer places their winning bid. The buyer then has 28 days to complete the purchase, or they risk losing both the property and their deposit.

Traditional mortgages tend to take substantially longer to arrange than property auction finance, meaning that they are often unsuitable for this type of purchase. A bridging loan is therefore usually used to literally ‘bridge the gap’ between when the purchase funds are needed and the time it takes to arrange a long-term mortgage. 

Once this mortgage is arranged, the buyer can use this funding to pay back the auction bridging loan.

Looking to buy property at auction in the UK? We can help finance it.

To get expert assistance today for your bridging loan arrange a call.
To find out the exact costs of auction finance 
click here - it takes just 3 minutes!

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