AUCTION FINANCE
Auction finance expertise you can trust.
Bidding on a property? We’ll arrange your auction finance, fast.
What is Auction Finance?
Auction finance is a specialist form of lending that enables individuals and property developers to secure funding quickly and efficiently for purchasing properties at auction.
Auction finance is a form of bridging loan used to buy a property at auction and complete the purchase quickly. Auction purchases generally have to be completed within 28 days of the auction.
Auctions provide a unique opportunity to acquire properties at competitive prices, but the tight timelines involved often require buyers to have readily available funds.
This is where auction finance plays a crucial role, providing short-term financing solutions to bridge the gap between winning a bid and completing the purchase.
How does Auction Finance Work?
When a property is successfully acquired at an auction, the buyer typically has a limited time frame (usually 28 days) to complete the transaction. Traditional mortgage lenders may not be able to meet this deadline, making auction finance an attractive alternative. Here’s how it works:
Pre-approval: Before attending an auction, prospective buyers can apply for auction finance and receive pre-approval, outlining the amount they can borrow based on their financial situation.
Property valuation: Once the desired property is identified, a professional valuation is conducted to determine its market value. The lender uses this valuation to assess the lending risk and calculate the loan amount.
Loan offer: If the property meets the lender’s criteria, a loan offer is extended, outlining the terms and conditions of the financing, including the interest rate, loan duration, and any associated fees.
Completion: Upon winning the auction, the buyer pays a deposit (usually 10% of the purchase price) and informs the lender. The lender then finalizes the legal documentation and transfers the remaining funds required to complete the purchase.
Expert Auction Finance Advice Tailored to Your Needs
If your capital is tied up in existing properties, auction finance can offer a quick temporary solution allowing you to add to your portfolio.
Dolphin Finance has worked on multiple auction finance transactions in the past with tight deadlines. As an independent, whole-of-market mortgage broker, Dolphin Finance has access to the entire property funding market. We work with over 170 different lenders, ranging from small building societies to global financial institutions.
Our specialist auction finance advisers will take the time to fully understand all your funding requirements. This allows us to source the most suitable auction finance terms for your circumstances.
Want to discuss your funding requirements in more detail? Whatever your auction finance needs, contact us today for a free initial consultation.
How Does our Auction Finance Service Work?
Step 1.
Enquire online via our website - you can either call or email us, or arrange a callback at a time convenient for you.
Step 2.
Initial consultation - after a thorough understanding of your needs, we will find the right auction finance terms for you.
Step 3.
We'll arrange all of the paperwork for you - we will work efficiently and proactively all the way to completion.
Our auction finance team is committed to providing the highest quality advice and service to clients throughout the UK.
Whether you are buying your first property at auction or an experienced investor looking to add to your property portfolio, our auction finance team can help.