Auction finance
Auction finance
Funding built around the 28-day completion deadline, arranged before the hammer falls rather than after it.
What it is
Finance that keeps pace with the auction calendar.
Brief: explain the auction timetable — exchange on the fall of the hammer, 10% deposit that day, completion in 28 days (sometimes 20) — and why a term lender cannot work to it. Make clear the finance must be lined up before bidding, not after.
[DRAFT] Two to three paragraphs setting out how an auction purchase differs contractually from a private treaty sale, and what that does to the funding timetable.
[DRAFT] Explain why a decision in principle taken before the catalogue closes is worth more than a cheaper rate found afterwards, and what happens to the deposit if completion is missed.
Use cases
When auction finance is the right tool.
Brief: each card should name a specific auction scenario Chris has funded, not a generic category.
Unmortgageable lots
[DRAFT] Properties with no kitchen, no bathroom or structural issues that a term lender will not touch until works are done.
Modern method of auction
[DRAFT] Reservation-fee auctions with 56-day timetables and how the funding approach differs from a traditional room sale.
Below-market-value buys
[DRAFT] Where the lender will lend against the purchase price rather than the valuation, and the six-month rule that follows.
Commercial lots
[DRAFT] Shops, offices and mixed-use lots bought at auction where the tenant position is unclear on day one.
Land and unusual titles
[DRAFT] Short leases, flying freeholds and title defects that surface in the legal pack.
Portfolio lots
[DRAFT] Buying several lots in one catalogue and funding them under a single facility.
Indicative terms
What the market currently looks like.
Brief: confirm each range against the current lender panel before publishing.
| Measure | Typical range |
|---|---|
| Monthly interest rate | [DRAFT] 0.65% – 1.25% |
| Maximum LTV (of purchase price) | [DRAFT] Up to 75% |
| Time to completion | [DRAFT] 7 – 21 days |
| Term length | [DRAFT] 3 – 18 months |
| Arrangement fee | [DRAFT] 1.5% – 2% |
| Pre-approval validity | [DRAFT] Typically 3 months |
Indicative only. Auction lots are priced on the legal pack, the condition of the lot and the exit.
Go deeper
Auction finance is bridging, priced for a deadline.
[DRAFT] One short paragraph explaining that auction finance is a bridging product with a compressed timetable, and pointing the reader to the full bridging page and the cost calculator.
Questions
The things people ask first.
Bidding on a lot in the next catalogue?
[DRAFT] One line inviting the reader to send the lot number and the legal pack for an indicative decision before the sale.
Same working day response.