Auction Loans
Funding that completes inside your 28 day deadline
When the hammer falls, you have 28 days to complete. Sometimes 14. A high street mortgage takes six to twelve weeks, so it was never going to work.
Auction finance is built for that gap. We can give you a Decision in Principle within hours and release funds in as little as seven days, so you can bid knowing the money is already behind you.
Get In Touch
What is an auction loan?
Auction Loans Explained In Simple Terms
An auction loan is short term finance secured against the property you have bought. You repay it by either selling the property on or refinancing onto a normal mortgage, usually within a few months.
What makes it different from a mortgage is what the lender looks at. A bank wants your income and a property in good condition. An auction lender wants the value of the asset and a clear plan for repayment. That is why auction finance can fund the sort of property a bank would turn down flat.
It costs more, though. Interest is charged monthly and there are fees on top, so it is designed to be held for months rather than years.
How auction finance fits your timeline
Intro:
Most auction purchases go wrong for the same reason: the buyer sorted the finance after they won, not before.
Before the auction
Send us the lot details. We issue a Decision in Principle, usually the same day, so you walk in knowing your ceiling. Nothing is committed and there is no obligation if you decide not to bid.
Auction day
The hammer falls and you are legally committed. You pay 10% on the day and contracts exchange there and then. There is no cooling off period.
Days 1 to 14
We instruct the valuation. Your solicitor works through the legal pack. If you started looking for finance today, this is where you would already be behind.
Days 14 to 28
Legals complete, funds are released, you pick up the keys.
We can still help if you have already won a lot and need money quickly. You will just have less room if something unexpected turns up in the legal pack. Request a free quote below to get a Decision in Principle before your next auction.
Smart Solutions for Urgent Property Opportunities
Key Features
Auction finance at a glance
- £50k to £2m and above.
- Funds in as little as 7 days.
- Terms of 1 to 24 months. Repay early with no penalty.
- Rates from 0.55% per month
- Up to 90% loan to value.
- Residential, semi commercial and commercial lots.
- No broker fees on straightforward loans.
- Flexible underwriting.
Ideal For
The lots we fund
- Unmortgageable property. No kitchen, no bathroom, or in poor condition.
- Short lease flats. Below standard lending criteria.
- Refurbishment projects. Light works through to full modernisation.
- Commercial to residential conversions. Including permitted development.
- Repossessions and probate sales. Where the seller wants speed.
- Land and part built developments. With or without planning.
- HMOs and multi lets. Existing or being converted.
- Below market value buys. Where the margin depends on completing fast.
Before you bid at Auction
- Get a Decision in Principle. It takes hours and costs nothing.
- Have a solicitor read the legal pack. Covenants, short leases, missing title documents and unpaid service charges all show up here. Better to find them now.
- Budget past the hammer price. You will also pay the 10% deposit, the buyer's premium, legal fees, valuation, arrangement fee and stamp duty. Work backwards from your total to set your bid limit.
- Set your maximum and stick to it. Auction rooms are designed to push you past it.
- Insure from exchange. Risk usually passes to you the second the hammer falls, which catches out a lot of first time buyers
Why Choose Us For Auction Loans
Why work with us?
- Whole of market. We are independent, with a panel of specialist auction lenders, so we match the deal to the lot.
- Speed that holds up. Decisions in hours and funds in days. A 28 day deadline leaves no room for a lender who takes a fortnight to reply.
- Awkward cases welcome. Short leases, unmortgageable stock, mixed use and part built schemes are routine here.
- One named adviser. The same person from first call to completion.
- Nottingham based. We work with investors across Nottinghamshire and the East Midlands and we know the local market.
Frequently Asked Questions
Can I arrange auction finance before the auction?
Yes, and it is worth doing. A Decision in Principle takes hours, costs nothing, and tells you what you can safely bid. It also means the valuation and legal work start the day after you win.
Can I complete within 28 days?
Yes. Funds are usually released within seven days once the application is moving, which leaves plenty of margin. A 14 day completion is possible too, but only with finance arranged beforehand.
How much deposit do I need?
You need 10% on auction day. Beyond that, expect to put in somewhere between 10% and 30% of the property value depending on the lot and the loan to value agreed, plus fees and stamp duty.
What if the property is unmortgageable?
That is much of the point. No kitchen, no bathroom, short lease, structural problems or unusual construction are all fundable, because the decision rests on the value and your exit.
What does it cost?
Interest is monthly, from 0.55%, and the rate depends on the loan to value, the property and your exit. Add an arrangement fee, valuation and legal costs, and sometimes an exit fee. We set all of it out in writing before you commit.
Can I get auction finance with bad credit?
Often, yes. Underwriting is based on the asset, so adverse credit is not an automatic no. It may affect your rate or how much you can borrow. Tell us upfront rather than letting it surface at underwriting.
What if I cannot complete in time?
You risk losing your 10% deposit and can be liable for the seller’s costs and any shortfall on resale. It is the best argument there is for arranging finance before you bid.
Do you fund commercial and mixed use lots?
Yes. Residential, semi commercial, commercial, land and HMOs are all in scope, along with conversions and part built developments.