Simply Specialist Lending for support obtaining Auction Finance

When it comes to securing funding for buying a property at auction, Simply Specialist Lending knows that speed is of the essence. Delays can mean you lose the chance to complete your auction purchase. Whether you are buying a house at auction or looking to finance the auction purchase of a commercial property, our independent brokers will work with you to find you a lender who will facilitate your purchase.

Simply Specialist Lending offers you a bespoke service to find you the most competitive finance for buying a property at auction. Our extensive experience and large lender panel makes us the ideal company to find you an auction finance loan.

If you’re buying a house at auction in the UK or are searching for commercial finance for buying at auction, contact Simply Specialist Lending today for your complimentary initial consultation.

Simply Specialist Lending Guide to Auction Finance in the UK

When most of us buy a property our first stop is the estate agents, but if you’re willing to do your homework buying a property at auction can be an excellent way to get a great deal. Find out what you need to know with this Simply Specialist Lending buying property at auction guide.

What is auction property finance & why do I need it?

If you’re contemplating attending a property auction, one of your first questions may be ‘can you buy an auction property with a mortgage?’ The answer in most cases is ‘no’ as you would run the risk of missing the auction house’s completion deadline and the valuation is unlikely to meet the lender requirements.  As most buyers don’t have all the funds they need, if you want to know how to buy a house at auction without cash, you’ll need specialist funding. 

What type of finance will I need?

As you won’t usually have access to a mortgage your auction loan financing will generally be in the form of a loan contract designed specifically for individuals or companies to ‘bridge’ a space in funding.

How quickly do I need to pay the balance on an auction property?

We’ve mentioned the importance of speed in securing auction finance and the need for lenders to understand your deadlines. This is because, after paying a deposit on the day of the auction, in most cases you will only have 28 days within which to complete your auction purchase. 

Can I arrange finance before an auction takes place?

Yes, it’s certainly possible to have ‘pre auction’ approval in place.

How much will I be able to borrow?

At Simply Specialist Lending we can help with auction finance amounts of between £26,000 and £2 million. This will form a percentage of the value of the auction property, and you will be expected to be able to fund some of the purchase cost yourself. Generally, lenders will provide a maximum load to value of 75%, in other words you will need to provide a deposit of at least 25% of the property’s value. You should also bear in mind that additional fees may also be payable. You will need to take into account your available funding when considering your maximum bid.