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Pre-Approval in minutes
Easy Auction Finance Application
Loan For House Purchase
Auction Loans to Buy Land
Property Development Auction Loan
Fully FCA Regulated Auction Finance
No Obligation Auction Finance Quotes
Whole Of Market Finance Broker
Open All Hours 7 Days a Week
Compare Auction Finance Rates
Fast Turnaround & Financial Advice

Compare Auction Finance Rates

Being able to get funding on a short notice when you want to buy property at an auction is important; otherwise, you may miss out on purchasing the property you want. Unfortunately, traditional funding typically takes a long period of time, making it difficult for people to secure the type of funding that they need to buy property at auction. The best way to make sure that you have the funds you need when buying property at an auction is to rely on auction finance.

Auction Finance Is A Short-Term Financial Product

Also known as bridging or short-term finance, auction finance makes it possible for borrowers to get the money that they need to purchase property in a short period of time. Almost any type of property can be purchased using auction finance, even if the property is not currently habitable. This is another feature that sets this type of lending apart from others that are currently available, as most require the property to be habitable. Both residential and commercial property can be purchased using auction finance, and they make it easy for landlords to buy property, as well. Both business owner-occupiers and investors can use auction finance to purchase commercial property. This may include warehouses, leisure centres, pubs, offices, and shops. When wanting to buy commercial property, it is often important to move quickly so that the borrower is able to beat any other people who are interesting in purchasing the property, and auction finance is generally the fastest way to get the necessary funding.

Auction Finance Removes The Need For A Costly Traditional Mortgage

By using auction finance to purchase property at an auction, and then refinancing the purchase at a later time, borrowers are often able to get a great deal on a piece of property without having to worry about how they are going to arrange a traditional mortgage. Refinancing the property later makes it possible for the borrower to get a great rate. There are some conditions for purchasing property using auction finance and also for refinancing the property later, but since each lender has his or her own set of rules and regulations, it is wise for the borrower to talk to the particular lender about any restrictions that are in place. While some lenders require landlords to own their property for more than six months before refinancing the loan, others do not require this. Using auction finance is a great way to buy property quickly and often at below market value. Being able to purchase property when it is at the right price can make a huge difference in a person's success or failure as a landlord, and, for this reason, working with a company who provides auction finance is important.

Advantages of Bridging Finance for Auction Property

There are a number of reasons why people use auction bridging loans to buy property at auction. Not only will you already have a set amount that you can bid, but you can close and bridge very quickly so that you can begin work on the property. You will already be prepared for how much the project will cost and you will understand the amount of interest that you will have to pay back so that there are no surprises. It’s important that you are aware of the risks as well as the advantages when considering a bridging loan for auction properties so that you are not taking on too much risk that you are unable to handle. At Bridginfinance.com, we are happy to talk to you about the pros and cons of auction bridging loans. This will ensure that you are aware of all of the stipulations of this type of loan and know how to pay it off, and that you don’t accidentally borrow more money than you actually need. Using an auction property bridging loan is the best way to buy property at auction, and when you work with an expert and reputable lender, you do not have to worry about taking as many risks.

Frequently Asked Questions

How to Get Finance to Buy at Auction?

If you’re planning to buy a property at auction, it pays to be prepared. In most instances, you’ll the expected to pay a deposit of 10% on the day, followed by the remaining balance within a couple of weeks. As a result, conventional mortgages and general home loans are out of the question. There are various avenues to cover the costs of a property at auction. If you currently own one or more properties, you could consider organising a secured loan ahead of time. Specialist auction finance and bridging loan services are also available, which can be particularly useful for auction property purchases. If you’re able to come up with the cash to pay the property outright, this is the fastest and most cost-effective approach of all. The important thing to remember is that from the moment your bid is accepted, you’ll have very little time to come up with the cash you need. Planning ahead is therefore vital, though there are options to explore if you need a substantial amount of cash as quickly as possible.

How to Finance Auction Property?

As mentioned above, specialist auction finance is ideal for covering the costs of properties purchased at auction. Unlike a traditional mortgage or homeowner loan, auction finance is a kind of fast-access bridging loan for this specific application. Typically, auction finance can be used to cover 75% to 90% of the property’s value. Secured against the borrower’s existing property or assets, no credit checks or proof of financial status are required. Just as long as you’re able to cover the cost of the loan with acceptable collateral, you’re almost guaranteed to qualify. These made-for purpose auction property purchase loans can also be offered at surprisingly low rates of interest and with minimal borrowing costs. Best of all, from application submission to receipt of the funds required can take as little as five working days. Flexible repayment terms are available to suit all requirements and budgets, but you’ll need to look beyond the High Street to access the best auction finance deals. Contact a member of the team at UK Property Finance today to organise an obligation-free consultation.