Fast & Competitive Auction Finance

Like traditional bridging loans, auction finance is offered on a short-term, interest-only basis.

It is possible to receive the funds within a few days of application, provided you have enough deposit (or another property/asset as security) and have demonstrated a clear exit strategy. This is usually a remortgage or the sale of the asset.

Before attending the auction, speak to your finance advisor about the property you are interested in purchasing. Ideally, that finance advisor is an active investor themselves as they will analyse the likelihood of you securing the finance you require along with the merits of the deal. The likelihood of raising finance will depend on many factors including (but not exclusive to):

- The location of the property
- The type of property
- The exit strategy of the deal
- Your previous property experience
- How much you want to borrow

Based on the above, your finance advisor will arrange the best Offer in Principle ready for you to participate in the auction. When purchasing at auction, you will be required to pay a 10% deposit on the day and the balance within typically 28 days.

The lender may carry out a formal valuation of the property and this will lead to a formal offer for your finance.

Auction finance is typically available to all types of borrowers, including employed, self-employed, limited companies, limited liability partnerships, sole traders, partnerships and those with adverse credit history. Because the finance is repaid via the exit strategy, the borrowers income is not considered.

Auction finance requires a deposit of 10% - 35% of the loan. However, some lenders will accept another property or asset of equivalent value to serve as security. Higher deposits can provide more favourable rates.