Auction finance is a smart way for property professionals to secure a property below market value. It is a type of bridging or short-term finance which can be arranged within days and is often key to the success of a property development because buying at the right price initially can make a huge difference. It is also available on unmortgageable and uninhabitable properties.
How can auction finance help property professionals?
When that hammer falls, the property is yours without any long-winded negotiations. You will usually need to make a non-refundable deposit worth several thousand pounds on the same day, with 28 days to pay the remaining balance.
It typically takes 8-12 weeks to buy or sell a property in the usual way which means the timeframe for auctions is much shorter and it can be more difficult to pull together the required funds. This is where BFS comes in… our auction finance bridging loans are a flexible product designed to suit individual client needs.
With more than 12 years of auction finance experience, we have the specialist knowledge required to provide decisions in principle before and during auction so that you can bid with confidence, knowing that you will have the necessary funds on time.
Properties available at auction may include:
- Unmortgageable or uninhabitable properties
- Conversion opportunities
- Mixed use properties
- Commercial property
How to apply?
You can apply online via our portal by clicking the ‘Apply Now’ button in the top right corner of our website. If you prefer, you can download an application form and return this to us by post (available to the right of this page). If you would like to contact us to discuss your specific circumstances, then please do contact our team using the form below.
When you apply, we may consider
- Property location
- Nature of the property
- How you intend to repay the bridging loan
- Previous experience
- How much you intend to borrow
- Your credit history
After you have purchased at auction, we will arrange a formal valuation (if required) and provide you with a formal offer for auction finance. Typically, we are able to draw down funds in 10 days but we have completed on loans in 48 hours.