Buying a property at auction, and need auction finance?

Auction finance is used to raise capital quickly to complete the purchase of a property bought at auction. Once making the winning bid, typically, you have up to 28 days to complete. Auction finance is used to give the borrower more time to source a longer term solution.

At The Finance Company, we are simplifying finance. We provide our clients access to the best deals. We have years of experience so we understand that auction finance is required in a short time frame. We tailor every loan to our clients to ensure you get the most appropriate package within the necessary timeframes.

 

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What is auction finance?

  • 1
    A short term, fast and flexible finance solution
  • 2
    Loans from one to 24 months
  • 3
    Bridge the gap between purchasing property and sourcing long term solutions
  • 4
    Available for auction property purchases
  • 5
    A type of bridging loan
  • 6
    Residential and commercial property finance

When buying a property at auction, buyers typically need 10% of the purchase price to put down as a deposit, the rest needs to be paid within 28 days. Auction finance is another term used for a short term bridging loan and it is used by borrowers to raise capital to cover the rest of the cost of an auction property. It is a type of finance that provides the borrower the much needed time to find either longer term solution or another source of capital to repay the loan. 

Auction finance lenders step in when there is a much shorter timeframe for completion. Some lenders can complete extremely quickly and The Finance Company can help you find the right lender who is able to complete in your required timeframe and at the best overall package for you. 

Please get in touch if you have any questions about auction finance and you need an auction finance broker. 

 

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Why The Finance Company?

We are a specialist finance broker that approaches every enquiry with the same thoroughness. Our team of experts removes the complicated processes of finding property finance, and the relationships we have with our panel of lenders mean we get our clients the most suitable deals.

  • Not restricted in any shape or size
  • We make finding finance simple
  • 35 years experience of lending
  • Committed to finding you the best package
  • We are a broker for life
  • Regulated and unregulated loans
  • A large panel of lenders from high street banks to specialist finance

Whether you’re a property developer or property investor, it doesn’t matter. Our approach to sourcing finance will be specific to you. We spend time understanding the needs of our clients and the request. That coupled with our in depth knowledge of property finance means we will get you the most appropriate package.

 

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Frequently asked questions:

1. What is auction finance?

Auction finance is a type of bridging loan. It is used as a short term solution to give the buyer time to find a longer term financial solution. Those buying at auctions need 10% of the purchase price as a deposit and then typically have 28 days to pay the remainder. Auction finance is quick to arrange and can complete within the required timeframe.

Auction finance works similar to bridging loans, where the property is used as security. This means the property will be repossed should you not repay the loan on time. When looking for auction finance you should also know what your exit strategy is. The exit means how you will repay the loan. Lenders will be looking to see that you have evidence of how you plan to repay the loan, whether it is getting a mortgage, selling an asset or releasing capital from somewhere else.

Bridging loans are for clients who need quick, short-term capital to fund a property project. This includes those who:

  • Bridging the gap between purchase and sale
  • Chain breaks
  • Deals that need to be completed quickly
  • Property investment
  • Undervalue transactions
  • Uninhabitable property
  • Contract reassignments
  • Business purposes
  • Refurbishment and build projects
  • Scheduled drawdown advances
  • Land with planning
  • Adverse credit
  • Downsizing
  • Quick completions
  • Lease extension

By using The Finance Company we can be the auction finance broker you need. We have a panel of lenders who are flexible with their lending requirements and we are committed to getting you the best overall deal.

A broker acts as the middleman between the borrower and the lender to facilitate a transaction. With the expertise of the broker, they are able to discuss, negotiate and source the best deal for the borrower. The Finance Company is simplifying finance.

Auction finance can be used for most properties including:

  • Residential
  • Commercial
  • Mixed use
  • HMOs
  • Land with or without planning

 

Contact us

Talk to a member of the team now.
Simply get in touch using the details below.

Or, complete our quick online enquiry form to receive a callback.

Phone: 0800 031 8829
Email: enquiry@thefinancecompany.co

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