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Auction Finance

Our auction finance can be used to purchase a wide range of property:

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Residential investments, including HMOs and multi-lets.

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Semi-commercial property

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Commercial property (as an investment or owner-occupied)

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Land

Auction finance is a great way for property developers to secure a below-market-value property, often from a motivated seller. It could even be suitable for first-time developers too if you have got the right expectations from the beginning.

However, auctions can be a riskier way to buy property than the traditional channels, and properties are sold on tight schedules — which does not leave you much time to do the necessary research and carry out your due diligence.

How does auction finance work?

With a lot of properties nowadays clearing six figures in value, even a 10% deposit can be a significant chunk of cash. Property auction finance can help in several ways, starting long before you step into the auction itself. With auction finance you can arrange the funding in advance, so before the hammer falls you know how much your budget is, and even what specification of property the lender will fund.

How can auction finance help property developers?

Putting up your hand and bidding on a property worth hundreds of thousands of pounds are a daunting prospect, even for experienced auction-goers.

If you make the winning bid, you will usually have to pay a non-refundable deposit on the day, and you will have 28 days to pay the balance.

Why do I need auction finance?

Traditional mortgages can take time to complete, especially for unusual or commercial security. As a result of this, completing within 28 days may be an issue where finance is required to complete. Unlike mortgages, auction finance can often be completed within 10-14 days, as such, they have become a popular option for those looking to finance auction purchases.

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