Financing a Property to Buy at Auction

Are you looking to purchase a property at auction? Unless you are considering a cash purchase will need to look into auction finance in the UK. Exel Finance can help with a variety of scenarios and property types when you’re buying at auction, including:

  • Residential properties, houses, flats, HMOs
  • Commercial properties
  • Semi-commercial and mixed-use properties
  • Land purchase
  • ‘un-mortgageable’ properties – Purchasing to refurbish then sell
  • Available to individuals, partnerships (LLPs) and limited companies
  • Adverse credit considered

What is Auction Finance?

Auction finance in the UK  is a short-term ‘bridging’ loan and can be for a term of between 1 and 24 months. In order for a lender to agree to a loan they will need to be satisfied with your ‘exit strategy’ or how you will repay the loan.   This will usually be by either selling the property purchased at auction or re-mortgaging to a standard commercial or buy-to-let mortgage.

How Long Does Auction Finance Take?

Payment deadlines can be tight when buying an auction property. However, auction finance can be obtained very quickly, as is needed by the auction house. If your bid is successful, you will need to pay a non-refundable deposit of around 10% of the purchase price. Full payment for the property is usually due within 28 days.

How Does It Work

It is offered on a short-term, interest-only basis. We can advise you on how long it takes to get your funds, but it can be as short as 14 days from the date of application. You will need evidence of your deposit amount or other assets as security and show how you will repay the auction finance.

We have access to a wide range of Bridging Loans from lenders who are happy to provide auction finance throughout the UK.

Please call us today to see how we can help or submit an enquiry and we will contact you.