Property Auction - Bridging Loan Calculator
Short term funding for property acquisition at auction requiring quick access to funds
When the gavel falls on your winning bid you will be expected to pay a 10% deposit of the hammer price. When you buy a property at auction it is important to have your finances arranged so you can complete the purchase with the balance of funds usually within 28 days. We assist buyers of property at auction securing the competitive short term bridging they need.
- Residential investment
- HMO & Multi-tenant
- Mixed use
- Light industrial
- Rural property
- Land & Plots
- Vacant possession
Non Status Facilities
We can help customers who are self-employed and unable to produce accounts or easily prove their income. Non status bridging can also assist customers with adverse credit history or circumstances that falls outside of normal lending criteria.
Flexible loan terms available with same-day decision in principle. Properties can be vacant or tenanted and funding can be arranged prior to the auction. Exit refinance can also be arranged where required.
Fast short-term auction finance
If you are looking to buy property at auction we can help you to raise the funds you need to complete on time. A bridging loan is short term finance secured on property or land and can be arranged in a very short period of time through a streamlined underwriting process to deliver the funds you require. Once the property transaction has completed we can also work with you to secure long term mortgage finance on the subject property or by restructuring an existing portfolio.
Fast Decisions & Market leading rates
Rates from 0.65% per month and facilities can be for 1 to 24 months. If you are bidding on multiple lots we can provide additional quotations based on different properties and outcome of the auction. Because we are an independent broker we have access to over 30 bridging lenders from Private fund lenders, Peer 2 Peer lending, and all Major bridging lenders, so we can offer the most competitive rates whatever your situation.
All property types
A wide range of property types and land can be used for security. Property can be in non-letting condition or unmortgageable, needing renovation or to be acquired for planning gain and development.
If you are looking at purchasing property from auction or have just exchanged contracts to buy, we can assist with our expert knowledge of property financing and structuring to help you get the deal done. We can provide free quotes for both bridging, refurbishment, and refinance.
- £25,000 to £5 million
- 1st Charge loans
- 2nd Charge loans
- No ERC
- No minimum income
- Roll up of interest
- Interest only available
- Non-status options
- 3rd Charge loans
- Light Refurbishment
- Heavy refurbishment
- Building extensions
- Loft conversions
- Title deed split
- Internal reconfiguration
- Conversion to HMO
- HMO Refurb
- Buy to Let refurb
Having a viable exit strategy is crucial and integral to securing a bridging facility. How you intend on repaying the bridge can affect lending criteria such as if it is going to be an open or closed bridge. When the exit strategy relys on a refinance, we can assist with arranging the remortgage and lieasing with the bridging lender to provide them with evidence of mortgage offer.
Buying properties at auction for renovation
Many properties that make their way into auction may be lender repossessions or distress sale and as such they can be defective in some way. Defects may include inadequate facilities, suffering dampness, lack reasonably modern facilities, or have defective electrical and central heating systems. Some properties might be safe and fit to live in but are just not of a competitive standard suitable for the local rental market.
Traditional lenders, high-street banks and Buy to Let lenders, are unable to lend without retention when the property is not in an immediately habitable and lettable condition. This, of course, limits the number of potential buyers down and with it the resale value, providing a good opportunity for property professionals to capitalise. Investors would typically be limited to cash buyers, those who can fund all the purchase costs and renovation without needing a mortgage.
Auction finance with Fast Turnaround
Many property investors use bridging finance to purchase property at auction with the intention of completing a renovation, remedial or conversion works before reselling the property or mortgaging with the uplift in value for a long term investment.
We can consider properties in any condition, financing for light refurbishment, renovation or conversion into multiple dwellings such as flats or homes in multiple occupation (HMO). Refurbishment products we can arrange have the advantage of being able to switch into a long term mortgage with refinancing up to 85% of the improved value within 6 months. Properties are considered in all locations in the UK including Wales and Scotland and can be vacant or tenanted. Refurbishment bridging rates start from 0.65% per month with facilities to roll up interest payments, interest deduction, or serviced monthly.
Auction Finance case studies
Bridging Finance Working Example
Working example House Refurb:
Purchase price: £229,950
Loan amount 80% LTV: £183,960
Cost of works: £34,000
Refurb term: 4 months
End value: £342,000
Mortgage amount 80% LTV: £273,600
After 6 months from date of purchase has elapsed the property could be re-mortgaged to a buy to let term mortgage product up to 85% LTV.