Auction finance is a type of bridging loan considered precisely for purchasing property at auction. It’s a short-term finance solution that permits buyers to secure a property fast normally within the 28-day completion time limit in buying a property at auction. Auction finance allows you to meet the deadline of securing the finance you need to purchase the property as traditional mortgages takes longer to arrange which can lead to missed opportunities.
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How Auction Finance Works
Auction finance is normally completed within 28 days of applying and fees are usually added to what you borrow. You normally have up to 12 months to repay the loan in a lump sum.
This is done by arranging longer-term finance, realising other funds or by selling the property.
Interest payments are made each month on the amount you borrow until the loan is repaid.
Types of Auction finance we introduce businesses and individuals
- Commercial property auction finance (as an investment or owner-occupied).
Commercial auction finance is a type of bridging loan designed to help individuals and businesses purchase commercial properties at auction. It provides short-term funding to bridge the gap between the auction purchase and longer-term financing. This type of financing is particularly useful for acquiring properties like offices, retail spaces, warehouses, or even mixed-use properties.
- Semi-commercial property auction finance.
Semi-commercial property auction finance is a specialized type of short-term financing used to purchase semi-commercial properties at auction. It’s a bridging loan designed to help buyers secure the necessary funds within the tight deadlines of auction sales. These loans allow you to purchase properties with both commercial and residential elements, such as shops with flats above, quickly and efficiently.
- Residential investments, including HMOs and multi-lets auction finance.
Residential auction finance is a type of bridging loan specifically designed to purchase properties at auction for residential use, such as investment properties or homes to be lived in. It allows buyers to secure the funds needed to purchase the property quickly, typically within a short timeframe, often within a few days. This type of finance is especially useful because auction purchases often require immediate payment of a deposit and completion within a short timeframe, typically 28 days, which traditional mortgages may not be able to accommodate.
- Land auction finance.
Land auction finance, also known as auction property finance, is a specialized type of short-term lending designed to help buyers secure funds quickly to purchase land at auction. It’s a fast-track financial solution tailored for the tight timeframes of auction sales, where payment is typically due within 28 days.
FAQs
The lending decisions of the lenders we would introduce you to are based on their lending criteria and in some instances subject to credit check and an evaluation of individual circumstances.
How fast can the funds be arranged?
The lenders we would introduce you to have the required expertise, speed and flexibility to help you complete your auction purchase normally within 28 days.
Would my income and credit status be taking into consideration?
The lenders we would introduce you to would look at your individual circumstances so can be more flexible on income and credit status, instead of just looking at your credit score.
Who can apply for an auction finance?
Auction finance is available to individuals and limited companies and can be secured against a range of residential and commercial properties.
In addition, you can decide between shorter term bridging loans and longer-term finance options, including residential, commercial and Buy to Let mortgages.
What type of valuations can be accepted?
Valuations which are automated can be accepted, using data from a range of existing databases to automatically calculate a value for the property that the loan will be secured against, greatly reducing the timescales and costs required.
What type of properties would I get auction finance?
What type of properties would I get auction finance?
- Commercial property (as an investment or owner-occupied).
- Semi-commercial property.
- Residential investments, including HMOs and multi-lets
- Land.