Typical auction scenarios
Unmortgageable property
Properties without a working kitchen or bathroom, or in poor condition, that mainstream lenders will not yet lend on.
Buy, refurbish and sell
Purchases where light or heavy works will add value before the property is sold on.
Buy, refurbish and refinance
Investors who plan to improve a property and then refinance onto a longer-term buy-to-let or commercial mortgage.
Mixed-use and commercial lots
Shops with flats above, small commercial units and other lots that need a specialist lender.
What to prepare before auction day
- Legal pack: so lenders and solicitors can review title, searches and special conditions early.
- Deposit and costs: including the auction deposit, buyer's premium, fees and any refurbishment budget.
- Exit strategy: a realistic plan to repay the loan by sale or refinance, with supporting evidence.
- Experience: details of any previous purchases, refurbishments or property portfolio.
- Solicitor: a solicitor who can act quickly on an auction timescale.
How auction finance works
- Before the auction: send us the lot details and legal pack. We review the property, the purchase price, your deposit and your exit.
- Lender appetite: we identify suitable lenders and confirm what information they will need.
- Auction day: if your bid is accepted, you exchange contracts and pay the deposit.
- After the auction: the valuation and legal work proceed to meet the completion date in the auction terms.
- Exit: the loan is repaid by sale or refinance, as agreed at the outset.
Frequently asked questions
How long do I have to complete after an auction?
It depends on the auction terms in the legal pack. Many auctions require completion within around 28 days of the auction, but some allow longer and some less, so always check the special conditions before you bid.
Should I arrange finance before the auction?
Yes, ideally. Reviewing the legal pack, your deposit and your exit with us before auction day means suitable lenders can be identified in advance and the case can move as soon as your bid is accepted.
What happens if my finance is not ready in time?
If you cannot complete within the deadline you may lose your deposit and face further costs under the auction terms. That is why preparation before the auction is so important.
Can I use auction finance for property that needs work?
Yes. Auction finance is often used for property that is not currently mortgageable, such as property without a working kitchen or bathroom, as long as there is a clear plan for the works and the exit.
How is auction finance repaid?
Usually by selling the property or by refinancing onto a longer-term buy-to-let or commercial mortgage once any works are complete.
Talk to us about your project
Tell us about the property, the amount you need and your timescale. We will review the funding route, shape the exit strategy and package the case for suitable lenders.
Start your enquiry