Auction Bridging Loans

Auctions can be the perfect place to find a great property for an even better price, but they do require you to act fast! This is where property auction finance can make a huge difference.

Welcome to One, fast bridging loans for auction property

At One, we understand the pressure of buying a property at auction, so we have created a service that makes it easier. We’ll help you apply and get access to a faster finance solution that will facilitate a quick property purchase.

Our auction bridging loan services allow bidders to meet tight deadlines and secure the necessary funds to cover their property investment and any further development and renovation plans.
We’ll provide you with a specialist auction finance broker who will use their experience and wide network to find you the most suitable auction finance lender. Your dedicated broker will ensure you get the best available rate and provide an end-to-end service so your auction property purchase goes smoothly.
Contact us today for a fast and hassle-free auction finance loan.

A house in a field that has been purchased through an auction finance loan
How does auction fiance work?

What is property auction finance?

Property auction finance is a specific type of bridging loan or short-term loan that helps individuals purchase property at auction. It provides faster-than-usual access to finance, enabling auction buyers to snap up a good deal.

Our auction bridging loan services are designed with you in mind. We focus on speed and efficiency while taking great care to ensure your needs are met.

Auction finance works by securing you a short-term loan for your auction purchases. These loans are on an interest-only basis, and financing is available much quicker than a traditional loan.

As with most bridging loans, a strong exit strategy (re-mortgage, sale of the property or sale of a security property) is crucial for ensuring the success of your application. The terms for auction finance are much shorter than those of a traditional mortgage, typically 1-18 months, but our network of brokers may be able to secure longer terms.

One of the huge benefits of auction finance loans is that they can be secured in advance of property auctions. A 10% deposit for the winning bidder can be a significant cost, particularly for first-time property investors. Securing a short-term auction loan in advance means you know exactly what your budget is and can feel confident in paying the deposit and completing the sale within the short time frame.

One of the great things about auction finance bridging loans and other short-term finance solutions is that they are generally very flexible and can help you purchase unique and even unmortgageable properties. This means that typically, the auction finance lender won’t be too concerned about the type of property as long as there is enough collateral, either from the auction property itself or another property, to secure the loan.

Our auction finance service

At One, we are property finance experts, specialising in bridging loans and short-term finance solutions for auction purchases. We provide a personal service that is tailored to each of our client’s unique wants and needs, focusing on speed and efficiency.

How our services help you:

  • Faster access to property auction finance
  • Expert bridging advice, whatever your situation
  • Flexible repayment options
  • Competitive loan terms
  • Ongoing support from the first call to application and beyond

Whether you’re a first-time property investor, a seasoned auction buyer, or simply looking to build your family home from the ground up, the experienced team at One will help you find the short-term lending you are looking for.

If you’re looking for the right type of short-term finance to facilitate an auction purchase, our expert leadership team will be happy to help.

We’ll speak to you to understand your current situation – is this your first investment purchase, or do you already have an impressive property portfolio? Then, we’ll place you with an experienced broker who will use their specialist experience to guide you to the perfect lender.

Whatever stage of the auction-buying journey you are at, our team has the right level of knowledge and expertise to ensure a successful outcome.

What are the eligibility criteria for auction bridging loans?

Providing you can pay the deposit or have sufficient equity, there is a high chance you could be eligible for auction finance.

While your credit history will play a role in whether or not you’ll be eligible for bridging finance for auction purchases, it isn’t the only deciding factor. Most lenders will be interested in the property value and your future plans with the purchase, as the property will be their security for the loan.

Our auction bridging finance service is available for the following:

  • People aged 18 years or over
  • Individuals, partnerships, LLPs, limited companies, foreign nationals, pension funds and offshore companies
  • Residential property, commercial property and land acceptable
  • Customers with bad credit history (to discuss with your broker and ensure finance is approved before the auction)

We’ll match you with the most suitable broker for your situation. They can guide you through the eligibility criteria, ensuring your application puts you in a good place to get accepted. For more information on auction finance eligibility criteria, please speak to one of our friendly advisors.

What type of auction property or land can auction house finance cover?

“>Our auction bridging loans can be used on many residential and commercial properties as well as land. Here are some of the investments you could make with a short-term auction finance loan:

Some of these inlcude:

Two businessmen shaking hands, agreeing on an auction loan contract

How can One help you get auction finance?

If you’ve spotted a property up for auction, you’ll need to act fast! Getting the right type of property auction finance means you can place a confident bid and get one step closer to securing the deal.
At One, we specialise in helping individuals and property business owners get the auction finance they need to reach their property goals. We provide a personal service that is fast, transparent and tailored to your needs. With competitive rates and fees, your dedicated broker will ensure you get the best options available and provide flexibility on exactly when you need your auction bridging loan.

Whether you are an experienced developer, a first-time investor, or looking for financing with adverse credit, One will find the right loan for your individual needs and support you throughout the application process and beyond.

Speak to an advisor today and get prepared before the hammer drops.

Questions Asked About Auction Bridging Loans

For more information about our auction finance services, please take a look at some of the FAQs below.

Bridging loans come in many forms, including regulated and unregulated, offering varying levels of protection to borrowers and lenders. Depending on the lender and the circumstances, auction finance may or may not be regulated.

Typically, if an auction lender requires the borrower's private home as collateral for the loan, they have to acquire a Financial Conduct Authority (FCA) certification and the loan is then considered regulated.

Ideally, you would want the auction finance loan amount to cover additional costs as well as the upfront cost of the property you intend to buy. However, each lender is different, and depending on your circumstances, financial position, and the lender's specific terms, it may take some negotiation to get enough finance to cover stamp duty costs as well.

Working with us gives you access to our wide network of brokers with vast knowledge of the auction finance market. They will be able to find you the best auction finance deal that is affordable and covers all the necessary costs you require.

Buying a property at auction isn't too dissimilar from buying a property any other way, other than the fact it is a quick turnaround and can be even more time-sensitive. Buying a property at auction will still require you to provide a significant deposit to secure the property. This is typically 10% of the property purchase price and is payable on the day.

You will then have around 28 days to pay the remaining funds, although this can vary. This is where auction finance can be particularly useful. It gives you added time and flexibility to make alternative arrangements for the remainder of the purchase price, such as a mortgage or reselling the property.

Auction finance is typically much faster to acquire than a traditional mortgage. However, the speed at which you can get one will still vary depending on several factors, such as your financial situation, how quickly you apply and each lender's processes. It can take anywhere from a couple of weeks to a month or more.

Working with property finance specialists like One will put you in the best position to secure a quick and favourable deal.

While auction finance is a more specialist type of lending, it doesn't necessarily mean auction finance lenders will be more challenging to find. Your knowledge of short-term finance solutions and bridging loans and where you live can impact how easily you'll be able to find lenders. Our experienced leadership team can help you every step of the way, giving you a better chance of finding the right lender.

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