Property Auction Finance

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Saved for our customers through our Deal Optimiser service.*

Calculate the cost of auction finance by telling us how much you need to borrow in the fields below. Give us some additional information within our Deal Optimiser on the next page to allow us to negotiate the rate on your behalf.

What is Auction Finance?

One of the most critical elements of financing a purchase at auction is speed. You need to be able to act quickly to snap up a below-market-value property, so auction finance works in the form of a bridging loan to release funds as quickly as possible to enable you to meet the tight schedules these properties sell under.

Why is auction finance a good option?

When the hammer drops, you enter into a legally binding contract to purchase the property. Properties at auction must be paid within strict timescales, usually 28 days. Typical mortgages usually take longer than 4 weeks to complete so you might find yourself in a situation where you need short term finance to bridge the gap.

Can you get a mortgage on an auction property?

When getting a mortgage to purchase a property at auction the same principles usually apply as when you purchase outside of an auction setting. Properties purchased at auction are usually snapped up by investors looking for a good deal and this can involve property that needs a fair amount of development. Standard mortgages require the property to be in good condition so this can limit your options which is why it’s a good idea to source auction finance designed with auctions in mind.

How much can I borrow with auction finance?

Our lenders offer loans that range from £500,000 to £15 million. The asset you choose to secure the loan against combined with your income will contribute to how much you are able to borrow.

You’ll usually have to put down at least 25% deposit as most lenders won’t offer loans in excess of 75% LTC (loan-to-value).

ALL PRODUCTS DISPLAYED ON THIS SITE ARE FOR UNREGULATED PRODUCTS ONLY. SHOULD YOU REQUIRE A REGULATED LOAN PLEASE CONTACT US. AS A MORTGAGE IS SECURED AGAINST YOUR PROPERTY IT COULD BE REPOSSESSED IF YOU DO NOT KEEP UP THE MORTGAGE REPAYMENTS.
COMMERCIAL MORTGAGES AND SOME FORMS OF BRIDGING, DEVELOPMENT AND BUY TO LET FINANCE ARE NOT REGULATED BY THE FINANCIAL CONDUCT AUTHORITY.

* Total savings achieved since November 2020 based on annualised interest rate saving where deal optimiser service negotiated a lower rate than lender’s published rate.