Auction Finance is a form of bridging finance which is used for buying property at auction. It allows the buyer to access funds quickly to complete the transaction, (typically within 14 or 28 days, in line with the Auction House’s requirements).

Auction purchases generally have to be completed within 28 days of the auction so in most cases, this is too short a time frame to arrange a conventional mortgage.  This is particularly the case when the property is uninhabitable or needs major renovation.

The Auction House will usually ask you to pay 10% of the purchase price on the day of the auction, plus the auction fees, if your bid is successful. You will then have a further 28 days to complete the purchase.

When you know you will be intending to bid on an auction property, we can arrange peace of mind by pre-qualifying you with a lender, prior to auction taking place. This will provide some assurance that funding will be available to allow the purchase to complete.  Many of the lenders on our panel do NOT require valuations for auction purchases and will work from actual purchase price achieved.

Auction finance is used for auction purchases. This type of loan is designed to be fast and to enable you complete your purchase very quickly.

It is important that Auction Finance is used correctly, as it can be an excellent way to profit from properties with potential, which are not being sold on the open market via the more conventional Estate Agent channels. Here is how to make the best use of Auction Finance:

Research and Plan

The first stage is to identify what type of property you are going to buy. You will need to look at the online auction catalogue and chose a target property or properties. Consider how much work needs doing to the property. Is it in a good area? What are the selling prices and values of comparable properties in and around the area? Is the property good value, and can it generate a profit?

Provisional Acceptance

The next step is pre-approval. This is an initial approval process which might include credit checks, identification checks and a quick on-line assessment of the property. The aim of this is to give you the confidence that finance is available, and what amount of finance is available, in principle (usually as a percentage of the purchase price).

Win the Auction

Once you are all set and you have your pre-approval in place, you can go to the auction and start bidding. If successful, you will need to pay 10% of the purchase price there and then, possibly plus auction fees. You will then be given up to 28 days to complete the purchase through your solicitor. You will also be responsible for insuring the property straight away.

• Fast loans! Designed to complete within the Auction House’s time frame.
• Loans from £25,000 with no maximum loan amount.
• Auction Finance Rates generally start from around4% per month
• No Exit Fees on most loans but this is subject to the Auction Finance lenders specific criteria.
• No Valuations. In many cases a property valuation report will not be required.
• Free legals. Some lenders offer free legal fees for setting up the loa Bear in mind though that you will still have to pay your own solicitor.
• 100% Auction Finance Available – 100% LTV available with other/ additional security.
• Loan terms from 1 month to 2 years
• For any property type in England, Scotland & Wales.

• Buyers name, address & date of birth.
• If the buyer is a company, the directors names and addresses are also required as well as the company name and its registered number
• Address of the property to be purchased.
• A copy of the auction Sales Particulars.
• Narrative summary of your plans/ intentions for the property.
• Explanation of how the Auction Finance will be repaid (usually via a sale or refinance).
• Different Auction Finance Lenders have different criteria so other information may also be requested.