Auction Finance
Transform Properties with Flexible Development Finance
Property auctions are a goldmine for savvy investors and developers, offering the chance to purchase properties at below-market prices. But what happens after the auction? That’s where light refurbishment bridging loans come in. Combining auction finance with refurbishment funding, we provide a complete solution to help you secure, renovate, and maximize the value of your property investments.
When you buy a property at auction, it often needs some level of refurbishment to unlock its full potential. Whether it’s a cosmetic refresh or a more extensive upgrade, our bridging loans for auctions and refurbishment ensure you have the funds to:
Secure the Property: Complete your auction purchase within the tight 28-day deadline.
Add Value: Carry out light refurbishment works to increase the property’s market value or rental income.
Sell or Refinance: Exit the loan quickly by selling the refurbished property or refinancing onto a long-term mortgage.
Key Benefits of Our Funding
Fast Funding: Get the cash you need to complete your auction purchase in as little as 24-48 hours.
High Loan-to-Value (LTV): Borrow up to 80% Net LTV for refurbishment projects, giving you the flexibility to fund both the purchase and the works.
Rolled-Up Interest: Keep your cash flow smooth with interest rolled into the loan, so you only pay when the project is complete.
No Early Repayment Charges: Exit the loan early without penalties after a minimum of 3 months.
Below Market Valuations (BMVs): Access auction properties at discounted rates, maximizing your investment potential.
Perfect for Property Investors and Developers
This combined finance solution is ideal for:
Property Flippers: Buy at auction, refurbish, and sell for a profit.
Landlords: Upgrade properties to attract higher rental yields or convert to HMOs.
Developers: Acquire and refurbish properties for resale or long-term investment.
How It Works: From Auction to Refurbishment
Get Pre-Approved: Before the auction, secure a Decision in Principle (DIP) to know exactly how much you can borrow for both the purchase and refurbishment.
Bid with Confidence: With your financing in place, bid competitively and secure your property.
Complete Quickly: We’ll fast-track your loan to ensure completion within the 28-day auction deadline.
Start Refurbishment: Once the property is yours, access additional funds to carry out the refurbishment works, such as:
Kitchen and bathroom upgrades
Internal reconfigurations
Rewiring and electrical work
HMO conversions for up to 6 tenants
Exit the Loan: Sell the refurbished property for a profit or refinance onto a long-term mortgage.
Ready to Transform Auction Properties into Profitable Investments?
If you’re looking to combine the speed of auction finance with the value-adding potential of light refurbishment, our bridging loans offer the perfect solution. With competitive rates, fast approvals, and flexible terms, we’re here to help you turn auction properties into profitable investments.
Contact us today to learn more about our auction and refurbishment finance options and take the first step toward building your property portfolio!
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Up to 80% net for our auction and refurbishment finance.
The Loan-to-Value (LTV) ratio for an unregulated bridging loan typically ranges from 65% to 80%, depending on factors such as the type of property, exit strategy, lender criteria, and the borrower's financial profile.
In some cases, lenders may offer up to 100% LTV if additional security, such as another property or valuable assets, is provided.
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Unregulated bridging loans can be completed in as little as 48 hours, with most transactions finalised within 10-20 working days.
For clients requiring rapid completion, options like no valuation or using an AVM’s or Desktop valuations can help reduce underwriting time.
Whilst these products can cost more than their slower counterparts the upfront costs are often lower and the credit and underwriting processes are significantly accelerated.
For cases with tight deadlines, such as auction purchases, working with a broker who can expedite the process and has leverage with lenders is crucial to ensure timely completion.
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The unregulated bridging loan market is vast, with thousands of lenders, each specialising in niche sectors.
Some high-street banks offering unregulated bridging loans (typically through intermediaries or specialist teams) include:
HSBC
NatWest
Barclays
Lloyds Bank
RBS
Santander
These banks usually work with specialist lenders or brokers to provide unregulated loans for businesses and property investors.
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Bridging loan interest rates typically range between 0.5% and 2% per month, equivalent to an annual rate of 6% to 24%. This means the cost of borrowing can range from £500 to £2,000 per month per £100,000 borrowed.
The average interest rate is around 0.95% per month, equating to £950 per month per £100,000. Rates can vary depending on the level of risk the lender is willing to take, often influenced by the loan-to-value (LTV) ratio. The higher the LTV, the higher the perceived risk, which may result in higher interest rates.
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Unregulated bridging loans lack FCA oversight, meaning fewer consumer protections. Whether a loan is regulated or unregulated depends on your situation; for example, most buy-to-let loans are unregulated as they’re for investment, not primary residence.
Borrowers should disclose all relevant information to the broker and clarify the loan's purpose and their financial situation. To mitigate risks, ensure a clear exit strategy and fully understand the loan terms, ensuring alignment with financial goals and repayment capabilities.
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Terms vary by lender, with some imposing early repayment fees and others offering flexible repayment options. As these terms can change during the process, it's crucial to review illustrations, formal offers, and facility letters to check if penalties apply.
We offer unregulated bridging loans with no early repayment charges—contact us today!
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Yes, the majority of unregulated bridging loans are used to finance property development projects, including refurbishments and conversions, due to their flexibility and speed.
Top Tips for a Successful Bridging Loan Application
Securing a bridging loan can be a smart solution for short-term financing, but getting your application right is crucial. Follow these expert tips to boost your chances of approval and avoid costly mistakes.
Ensure You Meet the Lender's Criteria
Before applying, make sure your property and financial profile align with the lender's requirements. Unregulated bridging loans vary widely, so choosing a lender who is eager to take on your deal can help you avoid unnecessary legal and valuation costs.Work with a Specialist Broker
A bridging finance expert can help you find the best rates and terms for your situation. Brokers have access to hundreds of lenders, including private investors and family offices, who actively seek new business. Just like insurance, using a specialist broker often provides better value than going directly to the most advertised lenders. They also know which lenders are reliable, fair, and committed to delivering on their promises without last-minute changes.Have a Strong Exit Strategy
Lenders want to see a clear plan for repaying the loan. Whether you plan to sell the property, refinance with a long-term mortgage, or use another repayment method, a solid exit strategy reassures lenders and improves your chances of approval.Choose a Transparent and Fair Lender
Avoid lenders or brokers who have hidden fees or unfavorable terms. Always ensure that all costs, including interest rates, arrangement fees, and exit fees, are clearly outlined and fully transparent.Partner with a Reputable Provider
Choose a lender that aligns with your needs, treats clients fairly, and has a strong market reputation. Some large, heavily marketed lenders impose strict and often punitive terms on direct clients, so be cautious and do your research.Understand the Loan Terms Before Signing
Before committing, make sure you fully understand all the terms and conditions. Review interest rates, fees, repayment schedules, and other critical details to ensure they align with market standards and your financial goals.Work with a Well-Capitalised Lender
Choose a lender with sufficient funds to complete your loan without delays. Be cautious with peer-to-peer lenders, as they may need extra time to raise capital, and terms could change throughout the process.Define Your Loan Purpose Clearly
Lenders and brokers need to understand why you require the loan for regulatory compliance and product matching. Whether it's for property acquisition, development, or covering a short-term cash gap, having a clear and well-documented purpose will strengthen your application.Avoid Unnecessary Delays and Costs
Ensure you meet all lender criteria before applying to prevent unexpected cancellations or costly delays. Have your broker verify this in advance, or choose a product that allows switching if needed.
By following these tips, you can streamline your bridging loan application, secure the right funding, and achieve your financial goals with confidence.
How to Apply
Contact Us
Apply directly with us, and we’ll discuss the pros and cons of no valuation bridging loans, ensuring you understand your options.Receive a Quote
Get a personalised quote for a no valuation or desktop valuation bridging loan by submitting your case for a no-obligation quote. We’ll assess your needs and provide a tailored solution.Guidance
We guide you through the application process, offering market-leading rates from our investors or the wider bridging loan market. Our expert advice ensures you get the best deal.Processing
We handle all aspects of the loan, including underwriting, legal procedures, and valuation (if applicable), until the loan is successfully completed.