Property Deals Secured with Auction Finance

Fast, flexible financing for property auctions with quick approvals and competitive terms

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Property Deals Secured with Auction Finance

First-time buyers, investors, and developers are increasingly interested in UK property auctions. The auction market is a great place to find competitively priced properties, repossessed homes, and unique opportunities.

It is difficult to meet tight deadlines at auctions. In most cases, buyers must pay a deposit immediately and pay the remainder within 28 days. Mortgages that fit this timeframe are rare, leaving many buyers at risk. The perfect solution to this problem is auction finance, also known as auction bridging loans.

What is auction finance?

A short-term bridging loan is designed to help buyers close auction purchases quickly. Auction finance can be arranged within days, unlike mortgages, which can take weeks. Due to its speed, it is ideal for meeting deadlines for auction completions.

A typical auction loan lasts for 6-12 months, including time for refinancing or reselling.

How Auction Finance Works

Fast and simple, the process is as follows:

1Pre-Approval

Some buyers apply for pre-approval before auctions to find out their maximum budget.

2Bidding with Confidence

By pre-approval, you can bid at auction with confidence.

3Quick Completion

Following a successful bid, lenders complete their checks and release funds.

4Exit Strategy

The short-term loan is repaid by refinancing or selling the home.

Key Benefits of Auction Finance

1. Speed

Quickly approve and release funds within strict auction deadlines.

2. Flexibility

Suitable for residential, commercial, or non-mortgageable properties.

3. Confidence

A pre-approval allows for confident bidding.

4. Short-Term Solution

Ideal for home renovations, refinancing, or selling.

5. Access to Unique Opportunities

Auction finance connects auction properties to mortgage-ready properties.

Who Can Use Auction Finance?

  • Property Investors: Buying properties quickly to grow portfolios.
  • Developers: Purchase or renovate land quickly.
  • Landlords: Creating a competitive rental portfolio.
  • First-Time Buyers: Buying through auctions at a lower price.

Auction Finance: Things to Consider

  1. Costs and Fees: Fees for litigation, valuation, and arrangement.
  2. Exit Strategy: Refinance, sell, or find other financing options.
  3. Due Diligence: A property at auction is sold "as is," which means you should inspect and research it before bidding on it.
  4. Loan-to-Value (LTV): LTV for auction financing is typically 70-75%.

Tapton Capital: Why Choose Us?

As an auction bridging loan specialist, Tapton Capital provides speed, flexibility, and confidence. Services we provide include:

  • Fast Approvals: 24-48 hour decisions.
  • Flexible Terms: We customize funding for your property.
  • Expert Support: Auction and financing assistance.
  • Investor-Friendly: Ideal for landlords, developers, and buyers of all levels.

Tapton Capital's finance is ready for when you need it, so you can bid at auctions with complete confidence.

Ready to Secure Your Auction Finance?

Get pre-approved today and bid with confidence at your next property auction.

Get Pre-Approved Now

FAQs About Auction Finance

All documents must be in order before a lender can release funds. Processes are sped up with preapproval.
Yes. Purchases of residential, commercial, mixed-use, and landed properties can be financed by auction.
Refinancing or selling is usually the best exit strategy. The lender may repossess the property if you do not repay.
It's designed for short-term use, but it's not permanent. Many investors prefer speed and flexibility over higher costs.
The answer is yes, but the repayment plan must be realistic.

Conclusion

Buying property under time pressure requires the use of auction finance, which is more than just a loan. Buying opportunities are secured with speed, flexibility, and reliability. Auction finance partners can benefit investors, developers, and landlords alike.

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