Short term secured bridging finance used as auction loans to fund property purchases

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Auction finance

We can arrange auction finance for you in the shape of bridging loans, and as long as you give us a couple of hours notice, can get back to you with a decision in principal, leaving you free to bid on any property that may have caught your eye. Whether you have researched what is on offer at a certain auctioneers sale and done all the due diligence, like viewing the house, having a builders/architects opinion and compared its minimum sale price to others homes in the immediate area, or if you have noticed there was an auction in your local area and seen a house you would like to buy, we can help you get auction finance arranged in the shape of bridging loans, so that you know if you have enough funds to buy the property outright, or at least enough for the deposit should you win the bidding.

There are stringent borrowing criteria related to bridging loans and short term finance of higher value that isn't classed as a mortgage, remortgage or secured loan. First and foremost, you only make interest payments until the full amount in one go. So if you clear the whole loan within 2 months, you only make two interest payments. This works superbly, unless you do not clear the advance quickly, as many monthly interest payments make bridging finance used as an auction loan less favourable than other forms of conventional secured borrowing. There is also a minimum loan amount, tending to be above £27,000.00. Any property that is used security is liable for repossession should you default on repayments or fail to clear the full amount within the required time. Please check with the lender you go with for more terms and conditions.

Bridging loans

It is advisable to make sure you can get bridging loans organised before you actually attend the auction, however, some of the lenders that feature on this site can give a decision in principal. The funds may not clear the same day, so it would be good to be mindful of the ten percent deposit needed should you win a property at auction.