Auction Bridging Finance

You can borrow between £100,000 and £20,000,000 for your properties.

This loan can be used to meet short-term auction deadlines, giving you confidence and certainty when bidding. The auction bridging finance can also be used to refurbish properties and sell them on. This could be a common tactic for properties found at an auction house, which may be run down and in need of an upgrade.

Our bridging loans for auction property can be used for a range of residential purchases, including flats and houses. You can also use this funding for commercial and semi-commercial properties. All of our auction bridging finance provides funding for investments in England and Wales.

Our auction bridging finance may give you a competitive edge when bidding. Instead of worrying about if you’ll have funding in time, or whether you’ll have enough to meet your bid, you’ll know the loan is there and ready to go. You’ll know exactly how high to go, and whether you’ll have enough left over for any refurbishment plans.

You can qualify for our auction purchase bridge loans so long as you’re aged between 21 and 85. You can apply as an individual, through a company setup, or as a self-employed worker. We’re also accepting of applications from any country, barring those that are sanctioned.

You don’t need to be based in the country you’re investing in or own any assets in the UK. What’s more, we’re able to help investors with adverse credit histories, CCJs, missed mortgage payments, defaults, bankruptcies and more.

On average, we find our loans are issued in around 2 weeks. However, when time is of the essence, we can provide bridging loans for your auction properties in as little as 3 days where needed. What’s important to note is that you should have enough capital in time to make an auction house’s tight deadline.

Across our bridging products, there is an arrangement fee, which starts from 1% of the gross loan amount. We have no admin fee. Though there may be an exit fee. Also, our commitment fees are refunded on drawdown. All our loans are underwritten from day one – you won’t be hit by any unexpected charges.

There are few differences between our this and other kinds of bridging loans. All our loans can be used to expand your property portfolio, regardless of whether you’re trying to invest in residential assets, flip a home, or bring in rental income. With an auction bridging loan however, we may place extra emphasis on speed, knowing that deadlines are looming.

Each case we deal with is assessed on its own merit. As such, the details needed will vary greatly. But you will need to provide certain documentation as a minimum.

This includes basic details on the investment itself. We will need to know the security property’s address, value, purchase price etc. If were working with a residential asset, we’ll need to know if there are tenants involved and rental income coming through.

The funding we provide will also be dependant on your exit strategy and method of repayment. We’ll want to know why you need the loan in the first place and how you plan to use the funding.

For an auction bridging loan, knowing where you are in the process will help. Understanding the auction house you’re working with, their timeframes, and processes will help us with your requirements.

To start an application you can contact MFS by phone, email, or on our Live Chat,  depending on what works best for you. Here, our underwriters will take the details of your requirement so that they can fully understand your position. By taking details upfront, they can provide a decision in principle that allows us to, as much as possible, provide pre-approval before any fees are paid. Following your confirmation that you would like to proceed, valuations and more detailed checks will be completed to ensure that final approval can be granted and the funds be released.

As costs rise, you may want to seek out savings wherever possible. Auction properties can often be old, unusual or undervalued. You could find a diamond in the rough.

These assets can present you with the opportunity to renovate and create value, add to your portfolio quickly, or convert a space into multiple residential dwellings to rent out. No matter what your plans though, you’ll likely need immediate access to funds. The auction world moves fast. You’ll need a lender that’ll be able to keep up.

Speed: If you’re looking for a fast investment in a short time frame auction properties are a great option. They often require a completion within 28 days. This means that, more often than not, buying at auction is a faster route than buying via a realtor. Bridging loans for auction property can be with you in as little as three days.

Long-term investment project to increase capital gains: A good way to utilise sold-off properties is to rent them as a single-use dwelling. Alternatively, you could also convert the building into a House in Multiple Occupation (HMO). This would then provide a monthly income that could cover any maintenance fees or wear-and-tear damage from tenants.

Short-term renovation projects to increase property value: Auction properties can sometimes require a vast amount of renovation work. The act of refurbishing a property can raise a house’s value and help entice buyers, making it a quick resale job for the investor.

Here are a few things to keep in mind when you’re looking at buying property from an auction house:

Time: Buying auction properties can be a great way to get the assets you want, and often at a competitive price. However, it is a good idea to have a good understanding of what kind of property you’re after. You will be able to identify opportunities in the bidding calatogue more easily and make the auction itself a lot more valuable for you.

Finances: This is the most important aspect. Confidence in your financial situation and knowing how much you have available to you, is a great starting place. If your finances are in place before the auction, it could decrease the risk of the purchase falling through; which may put you at risk of losing your chosen property and your deposit. MFS’ bridging loan for auction property will make your purchasing experience as simple and smooth as possible. Our underwriters are on hand to do all the heavy lifting and help ensure everything is in place. From liaising with solicitors, valuers and ensuring all required paperwork is completed, our team works in a prompt and professional manner so that you are able to purchase your auction properties with minimal worry.

Visit the properties you’re interested in: There is always a reason why a property is sold of in a bidding sale. Understanding what issues come with an auction property means that you can take this into consideration when bidding. This way, you can be ahead of the game and prepare your auction bridging finance well in advance, taking into account the potential costs that you may need to fund.

Questions that are worth considering:

• Was the property previously on the housing market and, if so, for how long?
• Has the property previously fallen through? If so, why?
• How long have the previous owners been at the property?
• What is the property’s history?

As the winning bidder, you will need to provide a deposit to hold your property. This is often 10% of the value of the property, however this can change depending on the auction house.

After the deposit is paid, you will then enter a completion period to complete your purchase. This is typically 28 days. Our property auction finance can provide you with the necessary funds to complete your property purchase, within the allotted time frame.