Our FAQs page is the quick route to finding out all about auction finance

Auction Finance FAQs

Below are the most commonly asked questions about this type of loan

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 be 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 for 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, it 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.