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Auction Finance

FAST SHORT-TERM AUCTION FINANCE FROM £500,000 WITH NO UPPER LIMIT

Auction Bridging Loans

WHAT IS AUCTION FINANCE AND HOW DOES IT WORK?

Auction finance is a short-term loan solution tailored for property investors looking to purchase property or land at an auction. Unlike traditional mortgages or loans, auction finance is designed to be quick and flexible, addressing the tight deadlines often associated with auction purchases. 

When a bidder wins a property or land at an auction, they’re typically required to pay a 10% deposit immediately and the remaining 90% within 28 days. This tight timeframe can be challenging for investors to secure traditional financing so applying for auction finance can allow them to confidently bid at auctions, knowing they have access to the funds required. 

In essence, auction finance bridges the gap between winning a bid and securing long-term financing, ensuring investors can capitalize on opportunities without delay.

Auction Loans

WHY CHOOSE NOVELLUS FOR AUCTION FINANCE?

The quick turnaround required for auction purchases means it can be challenging to secure funding to purchase an auction property or land within the timescales. The auction loan from Novellus fills this gap with its quick completion time. 

Other Novellus strong points include:

  • Privately funded means quick, autonomous decision-making
  • Deploying our own funds provides our borrowers with flexibility and certainty of capital
  • All decisions are made in-house with typical credit-backed terms provided within 48 hours
  • Simple, fast and straightforward application / approval process
  • Speed of execution
  • No early repayment fees
  • Each case is underwritten on its merits at competitive rates

Auction Loans

BRIDGING FINANCE FOR AUCTION PURCHASES

Our auction finance lending solutions can be used to purchase the following types of properties – subject to due diligence, valuation and legals:

  • Residential investments (Buy-to-Let, PBSA, Social Housing)
  • Property in need of renovation, refurbishment or improvement
  • HMOs
  • Commercial and Semi-commercial Property
  • Farms and Land with or without planning permission
  • Leisure complexes, Hotels, Pubs
  • Shops, Offices and other investment properties.

Auction Loans

AUCTION FINANCE APPLICATION CRITERIA

There are a few points for a borrower to consider carefully before deciding to take out a bridging loan for an auction purchase:

  • An asset with sufficient equity to act as security against the loan. This can be the property being purchased or existing property. 
  • A feasible exit strategy for repaying the loan such as selling the property or securing long-term funding.

Auction Loans

WHY USE AUCTION BRIDGING FINANCE?

Bridging loans generally take 1-2 weeks to process from the application being made which means funds would be available to make the 28-day deadline on an auction purchase.

The quick application process is the main advantage of a bridging loan. However, there are several other advantages, which include the following:

  • A bridging loan is based on the borrower’s ability to pay the loan back within the agreed timescale, rather than solely based on income or credit history.
  • It’s possible to pre-arrange a bridging loan before the auction. If the bidder is successful and purchases the desired property or land, the bridging loan can then be fully approved.
  • Bridging loans can be awarded for properties that a high-street lender would never consider. The loan gives the purchaser time to carry out the renovations and either secure long-term funding when habitable or re-sell.
  • Borrowing at higher LTV is common, although if another property is used as additional security it may be possible to get further borrowings.
  • Bridging loans for purchases at auction can also be used for land or commercial property purchases, as well as domestic properties.

Find out more

To help discover the approximate costs involved with bridging finance use the online bridging loan calculator for guidance.

Novellus offers a stress-free application process. For more information simply call us today on 0203 397 4871 or fill out our form below.

Quick Enquiry

Any data you provide Novellus Finance will be used in the decision making and processing of any future loan. The data we collect will be shared with our legal representatives and potentially other third parties to assess your suitability and for future transactions on any loan(s) with Novellus Finance. We will hold information securely for up to 7 years after your contract with Novellus Finance ends. Should you wish for us to delete all traces of data we hold about you after your contract expires or should you wish to request details of data we hold about you please email [email protected]

DPA Registration Number: ZA259171
Novellus Limited is registered with the FCA. Our registration number is 782166

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T Bromley, 15-17 London Road, Bromley, BR1 1DE
0203 397 4871
[email protected]
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©2023 Novellus Finance is a trading style of Novellus Limited registered in England and Wales.
Company No. 10790634. Registered address: T Bromley, 15-17 London Road, Bromley, BR1 1DE

THINK CAREFULLY BEFORE SECURING ANY DEBT AGAINST YOUR PROPERTY. YOUR PROPERTIES MAY BE AT RISK IF YOU DO NOT MEET THE COMMITMENTS OF YOUR LOAN