Auctions Bridging Loans

*Rates and fees may need to be amended to reflect current market conditions.

A Trusted Source of Capital for Many Companies

Fast Forward Finance has become one of the preferred financing partners for some of the leading UK companies in the UK.

We strive to help you find a good short-term finance solution for buying a property at an auction. We’ll work with you to make sure you have the right funding when you go to the auction.

What is an Auction Bridging loan?

Auction financing, also known as auction bridging financing or property auction financing, is a specific type of bridging loan for people buying property. When you buy property in an auction, you are expected to pay a non-refundable deposit, which is usually around 10% of the value of the property; you typically have around 28 days to raise the remaining sum.

Where the cash is not readily available, an auction bridging loan can be the solution you need.
These loans are usually arranged for a short period and are ideal for people who have a deadline payment to meet, such as the closing date on a property. It is possible that a conditional offer will be on the table within the first application, and it will be subject to an assessment made on the property you are buying.

What is an Auction Bridging Loan Secured Against?

Auction bridging finance or a property auction bridging loan is typically secured against an asset of your choice, but this is usually the property you are planning to buy.

Can you get an Unsecured Auction Bridging Loan?

Unsecured bridging loans are offered to applicants who have good credit ratings. This is due to the fact that, unlike secured loans, the lender is not protected by any collateral. Not surprisingly, unsecured bridging loans are more for smaller loan amounts than secured bridging loans and may have higher interest rates.

Auction Bridging Loans for your Auction Finance Needs

When you buy property at an auction, you are under a lot of pressure from the very first day to meet the deadline for the payment of deposit and exchange of contract. With bridging finance, this is not a problem.

Who are Auction Bridging Loans for?

Auction bridging loans are ideal for experienced property investors, developers, and landlords who find themselves in a contract or need property financing. Outside of homebuyers, landlords, and commercial property investors, auction bridging loans are used in some cases by people who want to complete the purchase of a property, especially in an auction.

When Should You Use an Auction Bridging Loan?

Usually, if you purchase a property at an auction, you need to pay a deposit of 10% immediately. The remainder is normally due within 28 days. Auction bridging loans are useful while you plan a long-term solution, either by a quick sale or a mortgage, to complete the purchase.

How Auction Bridging Loans can help your Business

Auction bridge loans can be used as short-term loans to help your business buy a property, where the money will be needed right away, such as at a property auction. This takes place while your current property is still in the process of being sold.

Normally, payment is expected within 28 days of purchase when buying a property at the auction, and traditional methods of mortgage financing would not be able to work in this time frame. With an auction bridging loan deal, you can complete the purchase within days, giving you time to put a mortgage into place at a later date.

What’s the typical interest rate for an Auction Bridging loan?

The interest rates on auction bridging loans range from XXX to XXX depending on circumstances. It’s best to use a broker who can understand your situation and use them to search the entire market to find the best lender to match.

Typically, though, interest is expressed monthly and is from 0.5% to 1.75%. Lower rates are for loans with low LTV on a property/ asset that can easily be resold in case of default; a strong-credit borrower and a straightforward exit plan are important aspects to consider as well.

We try to find lenders for our clients that are tailor-made and suitable for them. Once you have entered your information into the bridging loan calculator, you have a clear plan and calculation for your loan needs. You can then know if the amount you want to lend will be realistic in terms of repayments and if you can afford to borrow more or less than originally planned.

What kind of fees are involved in an Auction Bridging loan?

If you work with us to organise your bridging finance for property auctions, you will typically be charged a fee of 1%. In addition, a lender fee (typically 2%) may be payable, and it is common in this market for the borrower to also pay the lender’s legal and valuation fees.

Some bridging loan lenders charge an exit fee, which is a fee for the completion of the loan. The redemption fees are roughly another 1%, which means that with a loan of £500,000, you can expect to pay another £5,000 a month.

Bridging loans are also recorded as a “charge” for a property claim, which means legal costs for both you as a borrower and for the lender. Again, lenders pass on their legal fees to you. This means your fees can be up to 3% of the total loan, plus two sets of legal costs. However, if you can do a profitable deal overall, the cost can be worth it.

What are the Term Lengths for an Auction Bridging Loan?

Auction bridging loans are short-term deals that typically last between six and nine months. However, it is possible to find loans with a term of up to two years.

An open auction bridging loan does not have a fixed repayment date, but the borrower is expected to repay the loan before the end of the loan term.

What’s the eligibility criteria for an Auction Bridging Loan?

If you want to convince a bridging loan provider to offer you an auction bridging loan with a higher LTV ratio, it always helps to meet the general eligibility criteria for bridging loans.

Bridging loan applicants are always assessed on a case-by-case basis, but most bridging loan providers require property as collateral. This can only be one or more properties.
Further admission criteria typically include:

• At least 18 years old from the time you submitted your application to us.
• You are based in the UK.
• You have a fully functional and legitimate bank account.
• You have a valid email address and a mobile phone number.

The benefits of Auction Bridging finance

Since auction bridging loans can be set up quickly, they are often used to fund the outstanding balance that is required at the time of closing after an auction purchase; this is usually done within 28 days.

This is where the idea of ​​”bridging” comes from, as the loan serves to “bridge” a gap in your finances until you have realised another source of funding that will help you move from one step to the next. Loans can be secured against any suitable residential or commercial property or other assets such as land; the typical characteristics of a loan would apply to amounts over £50,000 and for a period of less than a year.

The main advantages of a bridging loan are that it offers speed and flexibility, and most lenders do not bother with minimum income as long as you have a sound exit plan. In some cases, second lending is possible without evaluation or approval with funds that are usually released within five days.

What can you use an Auction Bridging loan for?

You can use an auction bridging loan to quickly buy property from an auction. Auction bridging finance is perfect for this. If you are a property investor and see a property at auction that is a really attractive purchase, with auction financing, you can leave a deposit so that you can take out a mortgage.

Stellar Customer Service

Fast Forward Finance is committed to the highest standards of customer service. We seek to treat all customers fairly while aiming to offer each customer our individual attention.

Transparency Every Step of the Way

We endeavour to be transparent in terms of pricing by not hiding fees in the small print or offering short-term teaser prices. As part of our commitment to transparency, we undertake to only deal with bridging lenders whose terms, fees, and rates are completely clear from the start. You can be sure that we attempt to negotiate the most competitive bridging finance rates available.

Our clients range from experienced property investors, developers, and landlords to people buying their first investment property at auction. With Fast Forward Finance, experience – or the lack thereof – doesn’t count against you.

Following FCA Rules

Fast Forward Finance is a completely independent organisation that follows the rules set by the FCA.

Dedicated Account Executives

At Fast Forward Finance, you will be assigned a dedicated account manager who can assist you in arranging short-term bridging loans in all regions of the UK. Our experienced and highly-qualified customer advisors are available to you at every step of your loan process.

Some of the Sectors we lend to:

• Retail businesses
• Bars & restaurants
• Hotels and B&Bs
• Hair & beauty salons
• Dentists & opticians
• Vets
• Auto garages

How does the application process for an Auction Bridging Loan work?

The process of obtaining bridging finance is generally fairly straightforward; the criteria are more flexible than what most banks and mortgage lenders usually require. Our partner lenders now offer a quick and easy application process for short-term auction loans; business owners, property investors, and developers can apply for a loan online in no time.

Step 1: First enter your name, your email address, your contact number, and some information about your project in our form. Your request will be sent immediately to our partner who will contact you by email or phone.

Step 2: Our credit partner will provide you with some indicative loan numbers that show how much you might borrow and what interest rates are charged. If you are satisfied with this, you can fill out a simple form to continue.

Step 3: If your plans for the project meet the original criteria, one of our featured lenders will give you a “basic decision” that will confirm your loan offer, provided everything else is in place and you meet the loan criteria (i.e. property valuation, legal provisions, and exit plan).

Step 4: An official evaluation is carried out for the property in question. An RICS appraiser is usually hired to get an accurate value of the estate.

Step 5: When you have passed all checks and reviews, the lender can transfer the money to your bank account.

Please note: the application does not automatically qualify you for an auction bridging loan. You will have to meet the lender’s loan criteria and pass the lender’s verification processes before you are considered for a loan.

Super Fast Approvals

Loan approval can be obtained very quickly if the administrative process is managed professionally by our team of experts at Fast Forward Finance. As long as you meet the lender’s loan requirements and can pass the verification process, you can count on a quick approval.

Still have Questions? Call us Today on 02035142058

Contact us by phone or use our online form; we’ll go through your circumstances and work out what’s the best auction bridging loan for what you’re trying to achieve.

We will compare all UK lenders for you and offer a solution in just a few minutes; we will tell you if you qualify to apply, including interest rate, broker fees, and what your legal fees will be. As a specialised bridge finance broker in the UK, we also have access to special rates that are not available to other brokers. Get in touch today.