Auction Finance

Auction finance is a short term bridging facility designed for buyers who win property lots at auction but must complete the purchase within a tight timescale usually 14 to 28 days.

It’s ideal when:

• You don’t have immediate access to funds.
• Your traditional fundng won’t complete fast enough.
• You’re purchasing a property that needs refurbishment or change of use.

Auction finance is unregulated, because it’s used for investment or business purpose property rather than owner occupied homes.

Typical Loan Terms:

        Feature:                                                          Typical Range:

       Loan Size                                                 £50,000 - £10 million+

      Loan Term                                                       3 – 12 months

 Loan to Value (LTV)                   Up to 75 % of purchase price / valuation

     Interest Rates                                         From 0.55 % per month

  Completion Time                                            5 – 21 days typical

        Exit Route                                    Sale or refinance to long term mortgage

Funds can often be released before the auction if you’re pre approved, allowing you to bid with confidence.

Why Use Springboard Funding Ltd for Auction Finance?

Whole of market access: we compare terms across private, challenger, and specialist lenders.
Pre auction approval: obtain a decision in principle before bidding.
Speed & efficiency: direct underwriting and fast track valuations.
Flexible criteria: funding available for refurbishment, mixed use and commercial lots.
Transparent fees: no hidden charges or unnecessary broker costs.

Who Can Use Auction Finance

Suitable for:

• Property investors and developers: purchasing at auction.
• Limited companies (SPVs): acquiring buy to let or commercial lots.
• Developers: seeking quick site acquisition.
• Investors: funding refurbishment or conversion projects.

We can also assist with pre auction finance so you have verified funding ready on the day.

Typical Scenarios

1. Pre Auction Approval: get a Decision in Principle before bidding to set your maximum price.
2. Post Auction Completion: complete within 28 days after winning the lot.
3. Refurbishment Projects: bridge the purchase while works are completed, then refinance.
4. Commercial or Mixed-Use Purchases: fast funding for non standard assets.

Frequently Asked Questions

Q: Can I get funding before the auction?
A: Yes: we can arrange pre auction approval so you bid confidently with funding secured in advance.

Q: How quickly can you complete after I win a lot?
A: Completion is typically possible within 5 – 10 working days, subject to valuation and legals.

Q: Can I borrow against the hammer price?
A: Usually up to 75 % LTV based on the lower of purchase price or valuation.

Q: What if the property needs work before it can be mortgaged?
A: Auction finance can cover properties needing refurbishment or planning change, you can then refinance once the work is done.