Auction Purchase
What is an Auction Bridging Loan?
A bridging loan for auction purchases is a short-term finance solution designed to help buyers complete property transactions quickly. Since auction purchases often require completion within 28 days, commercial or residential investment mortgages aren’t viable. Bridging loans provide fast funding, ensuring you meet the deadline while arranging long-term finance, developing the property, or preparing the property for resale.
Common auction purchases include:
- Residential properties (including uninhabitable homes)
- Commercial buildings and mixed-use properties
- Development sites and land acquisitions
- Properties requiring refurbishment before a mortgage is available.
Key Benefits of a Bridging Loan for Auctions
- Fast Funding – Loans can be arranged in as little as 3–7 days, ensuring you meet auction deadlines.
- Secure Properties Below Market Value – Auctions often provide opportunities to buy at a discount, with bridging finance helping you act quickly.
- Finance for All Property Types – Available for residential, commercial, mixed-use, land and unmortgageable properties.
- No Monthly Repayments (Optional) – Interest can be rolled up and repaid at the end of the term, improving cash flow.
- Flexible Exit Strategies – Repay via refinance, resale, or other long-term funding
solutions. - Up to 100% Funding – Possible with additional security or cross-charging against other assets.
- No Early Repayment Penalties – If you repay the loan early, you only pay for the time you borrowed.
Who is Eligible?
Auction bridging loans are available to:
- Property investors and landlords
- Developers securing renovation projects
- Businesses buying trading premises at auction
How much can you borrow?
- Loan-to-Value (LTV): Up to 80% net (higher with additional security).
- Loan Amounts: Typically from £50,000 to £50,000,000+.
- Term Length: Usually 3 to 24 months.
- Interest Rates: Competitive rates based on property type and borrower profile.
