Bridging Finance used as Auction Property Finance

Buying properties at auction can be exciting and intimidating in equal measure. But what must be remembered is that when the dust settles, full payment for the property you purchase needs to be provided within 28 days. Otherwise, you run the risk of losing not only the property you were bidding on but also your deposit in its entirety.

This is where auction finance can offer a welcome lifeline to homebuyers and investors from all backgrounds. A stop-gap solution to provide all the time you need to secure a longer-term mortgage, auction finance can be arranged within a few working days.

Advance approval is also possible, so you know exactly how far your budget can stretch on a given day. Auction bridging finance is the ideal stop-gap to help you cover the non-refundable deposit and allow you to focus on securing a mortgage tailored to your future plans for the property.

If you are up against the clock when buying property at auction, it's imperative that you contact us at the earliest opportunity. Our trust-based relationships with niche and private lenders can help you obtain the most appropriate bridging finance in time for the day of the auction.

For more information or to discuss the potential benefits of auction finance in more detail, contact a member of the team at bridgingfinance.com today.

Typical uses

Bridging loans can be used for a variety of purposes, with the following being the most common:

Why use UK Bridging Loans?

Personal service:

Here at bridgingfinance.com, we take customer satisfaction very seriously. That is why we go the extra mile to provide the best service possible to all of our clients.

Expert advice:

Every member of our team is highly trained and experienced in property and specialist lending products, ensuring our clients get the best products at the best rates.

Flexible lending:

We have access to many specialist lending products that can be tailored to each individual’s needs. We can offer flexible, fast, and cost-effective loans for clients with specific requirements. Deal directly with the lender; no middleman!

Proven track record:

Our track record speaks for itself through our thousands of satisfied clients. Our experience and unrivalled customer service mean that we have many returning clients with whom we have built a long-lasting relationship.

Tech savvy:

We use the latest technology to ensure simplicity, speed, and ease for our clients, as well as highly trained staff to ensure everything runs smoothly.

Tailored loans:

We can tailor loans to suit whatever property funding needs our clients may present. With access to a wide range of lenders, we are able to offer specialist loans at competitive rates.

Frequently asked questions

Why buy properties at auction?

The appeal of picking up residential and commercial properties at auction is easy to understand. Just a few of the benefits of auction property purchases are as follows:

Unbeatable Bargains: Properties routinely go under the hammer at auction for significantly less than their true market value. Fixer-upper homes in need of repairs and renovations often sell for as little as 50,000 GBP or less.
Guaranteed Ownership: When the hammer goes down, the bidder instantly becomes the property's sole buyer. There is no risk of being gazumped at a late stage, nor does the seller have the option of backing out of the deal.
Speed and Simplicity: Auction property purchase transactions are completed within 28 working days. By contrast, it can take as long as three months to arrange a conventional mortgage to purchase a home on the conventional market.
Investment Opportunities: Auctions tend to be where most of the UK's non-standard properties are put up for sale, i.e., those considered to be 'unmortgageable'. Golden opportunities, therefore, abound for investors looking to flip homes for profit.
Immediate Income: It is even possible to purchase rental properties at auction that already have tenants living in them, translating to immediate income from the moment the property is purchased.
Cost-Effectiveness: The fees and charges associated with auction property purchases are almost always much lower than those of buying a house or commercial property via conventional channels.

How does auction bridging finance work?

Bridging finance for auction property purchases should always be pre-agreed in advance to ensure timely access to the funds needed to pay for the lot. Arranging auction bridging finance with bridgingfinance.com is as simple as follows:

Find a property you would like to purchase that is set to go under the hammer and conduct all the necessary research to ensure it is a sound investment opportunity.
Next, call UK Bridging Loans for an obligation-free consultation, during which we will assess your eligibility for auction finance and indicate how much you can borrow.
If your bid is successful on the day of the auction, you will need to pay a deposit of 10%, and your bridging loan application can be finalised over the next few days.
The auction bridging finance is secured against property in the same way as a mortgage and can be repaid 1 to 18 months after being issued. With monthly interest as low as 0.5%, auction finance can be a uniquely cost-effective facility when repaid promptly.

Contact details

Business Address: Office block 2, Kibworth Business Park, Kibworth Harcourt, Leicestershire, LE8 0EX

Telephone: 0116 464 5554

Email: info@bridgingfinance.com

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Sat: 10am-5pm

Sun: 11am-5pm

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