Auction Finance

Bridging Loans for Auction Properties

When purchasing a property at auction, you need a quick and dependable financing solution to meet the strict deadlines. Bridging loans provide the perfect answer, offering short-term funding that allows you to secure a property swiftly, even if you haven’t finalised long-term financing or sold an existing asset.

Benefits of Using Bridging Loans for Auction

• Quick Access to Funds  Auction purchases often require completion within 28 days, which is typically too short for traditional mortgage processing. Bridging loans can be arranged quickly, providing the funds you need to meet tight deadlines
• Flexible for Any Property Type Auction properties are sometimes deemed "unmortgageable" due to their condition or unusual features. Bridging loans make it possible to buy these properties, complete the necessary renovations, and transition to a standard mortgage later.
• A Practical Short-Term Solution Bridging loans serve as a temporary funding option, allowing you to secure a property immediately while you finalize a long-term plan, such as refinancing or selling another asset.

 Key Features of Bridging Loan

• Loan Amount: Typically provides up to 75% of the property’s value or purchase price. Higher borrowing, up to 85% or even 100%, is possible if you can offer another property as additional security.
• Term: Designed as a short-term solution, bridging loans generally range from 3 to 24 months.
• Interest: Interest is usually retained by the lender for the loan term. Alternatively, you can make monthly interest payments if the lender is confident the payments are manageable.
• Repayment: The loan is repaid through methods like selling a property, refinancing with a traditional mortgage, or securing alternative funds.
• Secured Loan: The loan is secured against the auction property or another property you own.

Unlocking Auction Success with Bridging Loans

• Fast Approval: Funds can be made available in as little as 5–7 days, ensuring you meet the strict timeframes of auction purchases.
• Bid with Confidence: Pre-approval gives you the assurance to bid at auction without worrying about securing financing later.
• Suitable for All Property Types: Perfect for properties that need renovations or structural repairs, bridging loans are ideal for auction properties that may not qualify for traditional mortgages.

 
Ready to Secure Your Auction Property?

Bridging loans offer a fast, flexible, and reliable solution for auction buyers, empowering you to seize opportunities without delays. Whether you're navigating strict deadlines, tackling unmortgageable properties, or planning a long-term strategy, bridging loans ensure you're prepared every step of the way. Take the stress out of auction financing and turn your property goals into reality with the right funding solution.