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Welcome to Advocate Finance, specialists in Bridging Loans for Auction Finance. When time is of the essence, our bridging loans provide the fast and flexible funding you need to secure properties at auction. With quick approvals and tailored solutions, we ensure you can confidently complete your purchase within the tight deadlines auction purchases demand.
Obtaining a bridging loan for auction finance is often easier than securing a traditional mortgage, as lenders focus on the property’s value and your exit strategy rather than extensive credit checks. The main challenge lies in the tight timeframes, as auction properties typically require completion within 28 days. At Advocate Finance, we specialise in bridging loans designed for auction purchases, ensuring you can access funds quickly and with minimal hassle.
While a standard mortgage may sometimes be used, it is rarely suitable for auction purchases due to the lengthy approval process. Bridging loans, by contrast, are tailored to meet the speed and flexibility required in auction scenarios. They allow you to complete the purchase quickly and provide an interim solution while arranging a long-term mortgage or selling the property. Advocate Finance helps you secure bridging loans specifically designed for these situations, ensuring you meet your auction deadlines.
In an Auction room, as soon as the gavel falls you are legally bound to purchase the property. For that reason, you need to have arranged your finance in advance as a 10% deposit is required on the day.
The final 90% must then be paid within 28 days. If you fail to complete the purchase on time, you could be faced with hefty fees and may lose your deposit.
Auction Bridging loans are fast and offer no monthly payments, as the interest is rolled-up into the loan; however, having an exit strategy is a must.
Bridging loans are an interim financing solution that can provide fast funding solutions to meet auction deadlines to those that are Buying a property at Auction.
Auction Bridging loans avoid all the usual lengthy procedures that a normal purchase involves; there’s less risk and disappointment of everything falling through at the last minute.
If you require finance for your Auction property, you must speak to an experienced and specialised broker who knows the market, as expertise and timekeeping are key.
Auction purchases demand quick decisions and fast access to funds, making bridging loans essential for many buyers. Without timely financing, you risk losing your deposit or missing out on the property altogether. Bridging loans offer the speed and certainty needed to complete auction purchases on time. Advocate Finance works with lenders who prioritise fast approvals, enabling you to confidently bid and complete your property acquisition.
Advantages | Disadvantages |
Speed and Certainty: Quick approvals ensure you can complete within auction deadlines. | Higher Interest Rates: Bridging loans typically have higher rates than standard mortgages due to their short-term nature. |
Pre-Approval Confidence: Knowing your borrowing limit allows you to bid confidently. | Short Loan Duration: You must have a clear exit strategy to repay or refinance within the loan term. |
Flexible Terms: Bridging loans are tailored to short-term needs, with terms up to 18 months. | Upfront Costs: Deposits and fees must be readily available to secure the loan and complete the purchase. |
Wide Property Range: Suitable for residential, commercial, and mixed-use properties, including those requiring significant refurbishment.
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Exit Options: Refinance or sell post-purchase to maximise your investment returns. |
Expertise and Experience
Advocate Finance specialises in bridging loans for auction purchases. Our team understands the urgency of auction deadlines and works to secure fast, flexible funding tailored to your needs.
How Can YOU Benefit from Our Advice?
Competitive Fee Structure
Comprehensive Range of Services
Yes, bridging loans are suitable for both residential and commercial properties purchased at auction.
Bridging loans are typically arranged within 7 to 14 days, depending on the lender and application complexity. Completion can be arranged within 4 weeks!
Yes, pre-approval is highly recommended. It provides clarity on your borrowing capacity and ensures fast access to funds once your bid is successful.
Yes, bridging loans are ideal for properties needing refurbishment or considered uninhabitable, as they focus on the property’s potential value rather than its current condition.
The interest of the loan is compounded month on month and added to the total facility. You only pay interest on the months you have the loan for.
The repayment of the loan can be by any funds that can be raised. The normal situation is that the sale proceeds from the house being sold are used to repay the bridging loan, plus any interest accrued in that time.
Yes, you can. Depending on the complexity of the property/project, you may need to provide experience or add a co-applicant who has experience in property development.
There are lenders who will offer an auction bridging loan on simple properties for first-time developers/landlords; speak to one of our team today for more information.
Our expert team of mortgage brokers are here to guide you through every stage of the process.
Important Information
ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
We are a credit broker not a lender.
Advocate Finance Ltd, registered at 55 Crown Street Brentwood, Essex CM14 4BD. Company Register number is 05579380. Authorised and Regulated by the Financial Conduct Authority. Our FCA registration number is 592830.
You can check via www.fca.org
We are registered with the ICO, Z1654205 and you can check via www.ico.org.uk.
We conduct both regulated and unregulated business and therefore not all products provided through us are regulated by the Financial Conduct Authority. We source mortgages and loans from a panel of lenders.
We may receive a commission that will vary depending on the lender, product, the amount borrowed or other permissible factors.
Advocate Finance is a mortgage and finance brokerage firm that specializes in securing loans and mortgages for various types of properties, including single properties, large portfolios, commercial sites, and development projects. They assist clients regardless of credit history, circumstances, or legal ownership, aiming to provide tailored financing solutions