Auction Finance
Auction Finance is a form of Bridging Finance used for buying a property at auction and specifically to complete a transaction quickly (typically within 14 or 28 days, in line with the Auction House’s requirements).
Auction purchases often have to be completed within 28 days of the auction, and in most cases, a conventional mortgage either cannot be arranged (if the property is not habitable) or will not be available within that time period.
The Auction House will usually ask you to pay 10% of the purchase price, plus the auction fees, at the time your bid is successful. You will then have a further 28 days to complete the purchase.
We can give peace of mind by pre-qualifying a purchaser prior to the auction, to give the confidence that funding will be in place. A number of our lenders do NOT require valuations for auction purchases of residential properties, as they will work off the purchase price.
What are the key features of Auction Finance?
Fast loans - Designed to complete within the Auction House’s timeframe.
Loans from £25,000 with no maximum loan amount.
Auction Finance Rates start from 0.4% per month.
No Exit Fees in many cases, however this Auction Finance Company specific.
No Valuations. In many cases, a valuation report will not be required.
100% Auction Finance Available – 100% Long-to-Value (LTV) available with other/additional security.
Terms from 1 month to 2 years.
For any property type in England, Scotland & Wales.
What are the criteria for Auction Finance lending?
First Charge required - on the property being purchased in favour of the auction finance lender.
Pre-arranged finance - You will have a Decision In Principle which allows you to make a bid at the auction with confidence.
Asset based loan - Auction Finance is based on the value of the property and there is more emphasis on the value of the property than the buyer’s income or credit status. Bad and poor credit scores are accepted.
Un-mortgageable properties - Auction Finance can be used for properties that are currently un-mortgageable. This could include properties with no working kitchen or bathroom, which would therefore be deemed uninhabitable.
Defined exit strategy - A lender needs to know how you intend to pay the loan back, within the loan term.
Auction Finance is a form of Bridging Finance used for buying a property at auction and specifically to complete a transaction quickly (typically within 14 or 28 days, in line with the Auction House’s requirements).
Auction purchases often have to be completed within 28 days of the auction, and in most cases, a conventional mortgage either cannot be arranged (if the property is not habitable) or will not be available within that time period.
The Auction House will usually ask you to pay 10% of the purchase price, plus the auction fees, at the time your bid is successful. You will then have a further 28 days to complete the purchase.
We can give peace of mind by pre-qualifying a purchaser prior to the auction, to give the confidence that funding will be in place. A number of our lenders do NOT require valuations for auction purchases of residential properties, as they will work off the purchase price.
What are the key features of Auction Finance?
Fast loans - Designed to complete within the Auction House’s timeframe.
Loans from £25,000 with no maximum loan amount.
Auction Finance Rates start from 0.4% per month.
No Exit Fees in many cases, however this Auction Finance Company specific.
No Valuations. In many cases, a valuation report will not be required.
100% Auction Finance Available – 100% Long-to-Value (LTV) available with other/additional security.
Terms from 1 month to 2 years.
For any property type in England, Scotland & Wales.
What are the criteria for Auction Finance lending?
First Charge required - on the property being purchased in favour of the auction finance lender.
Pre-arranged finance. You will have a Decision In Principle which allows you to make a bid at the auction with confidence.
Asset based loan. Auction Finance is based on the value of the property and there is more emphasis on the value of the property than the buyer’s income or credit status. Bad and poor credit scores are accepted.
Auction Finance can be used for properties that are currently unmortgageable. This could include properties with no working kitchen or bathroom, which would therefore be deemed uninhabitable.
Defined exit strategy. A lender needs to know how you intend to pay the loan back, within the loan term.