In the market of property purchases, Auction Finance Bridging Loans provide quick, hassle-free funding when you need it most. With flexible exit options, automated valuations, and solutions for UK, non-UK, and expat applicants, we make securing short-term finance simple and efficient. From competitive SLAs to second charge bridges, we’ve got you covered.
A bridging loan is a short-term loan designed to ‘bridge the gap’ during property purchases, typically used when buying at auction or purchasing a new property before selling an existing one. These loans are secured against assets like your home, providing the lender with collateral. While they offer fast access to finance, it's important to understand the risks involved, as failure to meet repayments could result in the loss of your property.
Bridging loans come in various forms, each designed to suit different financial situations. Understanding these options helps you choose the right loan for your needs.
When considering a bridging loan, it’s important to understand the associated fees. These costs can vary, but Auction Finance is here to help make the process as smooth and affordable as possible. From valuation to legal fees, we can assist you in navigating the financial landscape while ensuring transparency and efficiency.
You will likely encounter valuation fees, which assess your property’s value. At Auction Finance, we work with lenders who offer desktop or automated valuations to save you time and reduce costs. Additionally, you may face arrangement fees, typically around 2% of the loan, and possibly exit fees, though most of our lender partners don’t charge these. Legal fees are also standard, but we can connect you with lenders offering dual representation to cut both time and expenses.
With Auction Finance, you can borrow anywhere from £5,000 to millions, depending on your circumstances, and up to 75% of your property’s value. We're here to guide you through the process and ensure you get the best possible deal for your needs.
At Auction Finance, we pride ourselves on offering exceptional bridging finance solutions tailored to your unique needs. With interest rates starting as low as 0.55%, we empower you to borrow amounts ranging from £20,000 to an incredible £1 billion, ensuring that you have access to the capital required for your property ventures. Our extensive market access guarantees that you’ll find the most favourable terms available, giving you peace of mind during your financial journey.
If you’re considering 100% bridging finance, it is possible with the right assets and guidance. However, securing such funding requires a broker who can connect you with willing lenders, as well as a clear understanding of your property type, location, and exit strategy. Since each situation is unique, we encourage you to consult with our bridging finance advisors. They will thoroughly assess your circumstances and help you determine if 100% funding is achievable for you, ensuring you make informed decisions every step of the way.
At Auction Finance, we offer a comprehensive range of bridging loan solutions tailored to meet diverse property needs. Whether you’re purchasing residential or commercial properties, our expert team is here to help you navigate the financing landscape efficiently and effectively.
Ideal for fixing chain breaks, mortgage delays, buy-to-let investments, property flips, and purchasing properties with short leases.
Flexible funding for semi-commercial and commercial property purchases.
Quick financing solutions for residential and commercial auction purchases, ensuring you meet tight 28-day completion deadlines.
Support for light and heavy refurbishments, development projects, and business-related financing to help you achieve your goals.
Yes, it is possible to secure a bridge loan even with a poor credit score; however, you may be offered less favourable interest rates compared to borrowers with better credit ratings.
The repayment period for bridging loans can vary by lender, but these loans are typically short-term, lasting up to 12 months.
Bridging loans are processed relatively quickly due to their short-term nature. You can expect approval within 5 to 21 days.
You can use our loan calculator to estimate your borrowing capacity and see how it aligns with your desired loan-to-value (LTV) ratio.
If you are unable to meet your bridging loan repayments, you risk losing your property and negatively impacting your credit score.
Absolutely. Many landlords opt for bridging loans to secure deposits for their buy-to-let investments.
While bridging loans are generally quicker to arrange than mortgages, the timeline can range from a few days to several weeks. This is due to the need for property valuations and credit checks when using your asset as collateral.
To secure a bridging loan, you’ll need to provide equity from your current home or another valuable asset as collateral. Typically, our partner Fluent requires at least 35% equity.
Whether a bridging loan is right for you depends on your personal financial situation and your willingness to use your home as collateral. Remember that, like all secured loans, bridging loans carry risks, including the potential loss of your property if repayments are not met.
If a bridging loan doesn’t seem suitable for your needs, consider these alternatives:
The suitability of a bridging loan depends on your individual financial circumstances and borrowing needs. Bridging loans are ideal for those seeking a short-term solution for a significant amount they can repay quickly. To qualify in the UK, you must be at least 18 years old, possess a valuable asset for collateral (often your home), and be a UK resident.
Yes, lenders will conduct a credit check before approving a bridging loan. However, they will also take into account other factors, such as the security you can provide and your proposed exit strategy.
Yes, securing 100% bridging finance is possible, but it typically requires offering additional assets as collateral. This may involve using multiple properties as security, and the criteria and costs for such loans are often more stringent.
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