Head of Content
Mortgage Advisor & Director
What is Auction Finance?
To secure a property at an auction, you will need to provide a deposit on the day to guarantee the sale, with the balance due within 28 days of completion.
If you’re successful with your auction bid, you’ll need to pay 10% deposit on the day and the full balance of the property sale within 28 days. Auction finance is a type of short-term bridging loan that can be arranged very quickly to satisfy these timescales. Designed to offer flexibility, auction finance helps buyers to bid with confidence and complete the process quickly.
Our experienced team of advisors have helped many people like you to get a great deal on their auction finance and subsequent mortgage. Our team have more than 10 years of experience in auction finance, and access to a range of specialist deals and options that are not available to the general public. We put people at the heart of our decision-making, not computers.
If you're interested in buying at auction and are looking for short-term finance options, complete our simple online form today and one of our team will be in touch.
What type of properties can be bought using auction finance?
Auction finance can be a useful funding source to buy a variety of property types, bridging the gap until longer-term funding is organised.
Residential property
Whether you are looking to develop and sell on a property, or are planning to move in, we can help secure the funding to enable the purchase.
Buy to Let including HMO's
Our team support landlords who are considering an auction purchase, arranging both the auction finance and longer-term buy to let or HMO mortgage if required.
Commercial property
If you are looking to buy a shop, office, restaurant pub, industrial unit, leisure facility or any other type of commercial property at auction, we can help.
Mixed-use property
Auction funding can be arranged for mixed-use commercial/residential buildings, such as a home above a restaurant.
Land
Our team can also help you to secure finance for land bought at auction, with or without planning permission.
What rates can I expect to pay for auction funding?
As a short-term funding option, you can expect to pay higher rates than you would if it was a mortgage or long-term loan.
As a general guide, between 0.5 to 1% a month is typical. As the term is generally no longer than 12 months, this equates to 6% to 12% annually.
Find out how our brokers helped a client secure finance to buy at auction
How much can I borrow with auction financing?
There are a variety of options available for auction financing, ranging anywhere from £10k up to loans of millions of pounds. Whatever property you are looking to buy, there will be a funding option that matches. Get in touch with one of our team to get started!
When will I have to repay auction finance?
You will have up to 12 months to repay your auction finance, after which longer-term refinancing is recommended.
Get in touch
For more information on auction finance, complete our simple online form, and one of our advisors will be in touch to discuss your needs.
Choosing an Adviser
Selecting a qualified and experienced mortgage adviser is of great importance. To choose a suitable adviser, evaluate their qualifications, experience, and reputation, and ensure they are regulated by the Financial Conduct Authority (FCA).
Read reviews from previous clients and make sure they provide a clear explanation of the products and services they offer, as well as the fees and charges associated with them.
