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For property investors, securing fast and flexible finance is critical—especially when buying at auction. Our 85% Net LTV Bridging Loan offers the highest net LTV available for non-regulated bridging finance, enabling you to unlock maximum borrowing power for auction purchases.
In this comprehensive guide, we’ll explore:
A bridging loan is a short-term finance solution designed to “bridge the gap” between purchasing a property at auction and securing long-term finance or selling the asset. Our product is unique, offering a net Loan-to-Value (LTV) of 85% on non-regulated bridging finance. This means that, after deducting fees and costs, you can borrow up to 85% of the property’s value.
Key Features:
High Net LTV: Up to 85% of the property’s value, giving you more funds to work with.
Speed: Fast approval and funding, typically within 24–48 hours, so you meet auction deadlines.
Flexible Terms: Short-term finance designed for completion within 6–18 months.
Non-Regulated: Designed for property transactions where traditional regulated mortgages aren’t available.
With an 85% net LTV, you secure more finance relative to the property value. This extra borrowing power can be crucial in competitive auction environments where funds need to be available quickly.
Auctions require swift completion—often within 28 days. Our bridging loans are designed for rapid approval, ensuring you have funds on hand immediately after winning the bid.
Auction properties often need refurbishment or planning permission before they become mortgageable. Bridging finance can cover these properties even when traditional lenders won’t approve due to the property’s condition.
For properties that don’t qualify for standard regulated mortgages, our bridging loan offers a vital alternative, allowing investors to take advantage of below-market auction deals.
Before bidding, submit your application to get a Decision in Principle (DIP). This pre-approval informs you of your borrowing limit and strengthens your position at auction.
Provide required documents, such as:
A professional valuation confirms the property’s value, ensuring the loan amount aligns with the 85% net LTV. Approval is typically granted within 24–48 hours.
Once approved, the bridging loan is disbursed quickly, allowing you to complete the auction purchase within the required timeframe.
Lenders require a clear exit strategy to ensure repayment of the short-term loan. Common exit strategies include:
Once the property is refurbished and becomes mortgageable, refinance the bridging loan into a long-term Buy-to-Let mortgage.
After adding value through renovations, sell the property at a profit to repay the loan.
Use available cash reserves if refinancing or selling isn’t immediately viable.
Investor: Emily, a seasoned property investor
Property: A dilapidated townhouse purchased at auction for £200,000
Challenge: The property required significant renovation to become rentable
Solution:
Outcome:
The high LTV allowed Emily to maximise her borrowing capacity, complete the auction purchase swiftly, and eventually increase her portfolio value significantly.
An 85% Net LTV Bridging Loan offers property investors the fast, flexible funding required to secure auction properties quickly. While the rates and costs are higher than traditional mortgages, the ability to access up to 85% of a property's value can make a significant difference in competitive auction environments.
If you’re ready to unlock maximum borrowing power for your next auction purchase, explore our expert solutions and secure the finance you need—fast.
Ans: It means you can borrow up to 85% of the property’s value after deducting fees and costs, giving you more funds compared to standard loans.
Ans: Most bridging loans are approved within 24–48 hours, with funds available in 7–14 days, ensuring you meet auction deadlines.
Ans: It’s best suited for properties that require fast funding and might need refurbishment or planning permission before becoming mortgageable.
Ans: If you’re unable to refinance or sell in time, you may face penalty interest or additional fees. Always have a robust exit plan in place.
Ans: Even if you have cash, a bridging loan can help you preserve liquidity for further investments or unexpected costs.
(C) 2025 Auction Finance is a trading name of Mortgage Knight Ltd