Auction Finance
When purchasing property or land at auction you will need funds available on the day of the auction - normally 10% of the purchase price. Completion typically takes place between 14 and 28 days later, where the remaining balance and fees are due.
It is possible to arrange a mortgage for auction purchases, however, it can be challenging to arrange the lending within the tight timescales. This is where auction finance provides an ideal solution.
Auction House work closely with national lender Together, who specialise in short-term bridging loans for auction purchases. Together provide a fast, personalised service and are open-minded about credit history and types of properties.
Together's auction finance at a glance
- Short term finance (typically up to 12 months)
- Residential, commercial, semi-commercial and land
- Borrow up to 75% of the property's value
- Loans from £26k - £5m
- Competitive interest rates from 0.85% above Bank of England base rate
- No exit fee options
What is a bridging loan?
A bridging loan is the ideal solution for purchasing residential or commercial property at auction. It is a short-term loan that bridges the gap between your completion deadline and your mortgage being arranged.
How long will it take to secure funding?
Funds can normally be made available within 7-10 days, so with a supportive solicitor, you could be able to complete within a week of your initial enquiry. Loans can be organised before, during or after the auction, meaning you have the flexibility to organise your finance when you wish. Valuations can also be carried out after a successful bid at auction.
How do I pay off the bridging loan?
Following the purchase, you will have 12 months to repay the auction finance. If you don't have the cash to pay this off, you can settle the payment by selling the property or refinancing through a mortgage. Depending on your circumstances, this could be a buy to let, commercial or personal mortgage.
* You may have to pay an Exit Fee if you repay the loan before the end of the term.
Decision in principle
Together are normally able to provide a decision in principle the same day as receiving your enquiry. To see how much you can borrow, contact Together today!
Auction House UK recommends Together's services based on a long standing relationship and their excellent reputation. Our teams within the regions receive a referral fee for recommending these services to customers.
Whilst we feel that many customers would benefit from Together's services, you are under no obligation to use Together, and other finance lenders are available.