Our auction finance calculator is a tool that will allow you to determine how much you may be able to borrow for your auction purchase, what you’ll need to pay back, and how we’ll be able to support your property investment goals.
Get in touch via phone, chat or email about your query, however quickly you need funding. Auction houses have tight deadlines. We’re able to issue funding in as little as 3 days.
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Auction Finance Calculator Guide
What is an auction finance calculator & how does it work?
An auction finance calculator, or auction loan calculator, is an interactive tool that allows you to determine the overall cost of utilising specialist finance for auction funding.
You’ll need to enter a few basic details for your investment. Including the property value, loan amount required, and term of the loan.
As this information is entered, costing results will be presented in real-time. You’ll be shown what the gross and net loan amount will be, the loan-to-value (LTV) ratio, and what the monthly interest payments will amount to.
Which properties can the auction loan calculator be used for?
The auction finance calculator can be used for any type of property found at auction. This can include residential homes, such as houses or flats, or commercial and semi-commercial spaces, including stores and offices. Our auction funding can be used for properties in England and Wales.
How much can I borrow?
Our auction funding ranges between £100,000 and £20,000,000, with a maximum LTV of 75%. Terms can range between 3 and 24 months.
How do I use the calculator?
The auction finance calculator is split into two key sections. There are orange boxes, which require input from you, and blue boxes, which are updated in real time based on the information you enter.
You will need to enter a value for the property you’re investing in, along with any outstanding mortgage held against it. You’ll then need to enter a figure for the loan amount you require, which will need to sit between £100,000 and £20,000,000. A term for the loan will also be required.
You will also need to specify your preferred interest payment plan. Our auction loan calculator has three options: rolled up, part serviced, and pay interest monthly (3 months rolled and deducted).
Finally, you’ll be able to enter differing percentages for the interest rate and arrangement fee to see how they’ll affect your final bill. Interest rates for our auction funding will vary between borrowers, while arrangement fees start from 1%.
The results of all this will be presented towards the right side of the auction finance calculator.
How is the interest calculated?
Interest rates for our auction bridge loans and indeed, all our products, are calculated based on risk. They’re affected by your individual circumstances, your investment, risk within the wider market, the Bank of England’s base rate decisions, and more.
For the specialist finance market specifically, interest rates will be impacted by the short-term nature of the funding. As such, the interest rate for your auction funding will be heavily dependent on your exit strategy, and term.
Our auction funding is available to borrowers from a broad range of backgrounds. All our products can be utilised by those aged between 21 and 85, who are investing in property based in England or Wales.
Our loans can be used by individual borrowers, the self-employed, various corporate setups, and even foreign nationals or offshore companies. We’re happy to accept applications from any country, other than those that are sanctioned.
We have a flexible lending criteria process, with every case assessed on its individual merits and circumstances. We do not follow a tick-box lending criteria, and we’re open to applications from those who may have CCJs, defaults, or even bankruptcies on their records.
How fast can I get funding?
Auction funds could be with you in as little as three days. However, the speed of delivery will be dependent on your circumstances and the nature of your investment. Some cases may see a turnaround time of a few weeks.
In most cases, auctions will need to be wrapped up within 28 days. We’ll move as quickly as we can to deliver funding in time for an auction house’s tight deadline.
Fees and other costs
Here at MFS, we’re upfront with our fees. Your case will be underwritten from day one, meaning you’ll never be hit with surprise costs. Across our products, we have no admin fees, and commitment fees are refunded on draw-down. We have arrangement fees starting from 1% and there may be exit fees to pay, with the price determined on application.
But, outside our fees, you need to be aware of the costs associated with the auction process. Many auction houses will have an administration charge, while a “buyer’s premium” may also be applicable. There may also be numerous other fees which will all need to factored into your overall budget.
Why can MFS help me with my auction funding?
We have over 15 years of specialist finance experience behind us and in that time, we’ve built up vast amounts of knowledge on the auction market. We know how quickly they move, the types of properties that pop up in auction houses, and the pressures bidders face.
We’ll keep all of this in mind when we assess your case. Across all our products, we prioritise speed, flexibility, and commitment. You’ll be able to be bid with confidence knowing we’re there to support your long-term investment plans.
Try our free auction finance calculator today and get a quote instantly.
Net loan amount: The size of your loan, minus fees and other costs.
Gross loan amount: The size of your loan once fees and other costs are factored in.
Term: The length of time that the funds are lent out for. If you borrow money that needs to be repaid in 12 months, it has a 12 month term.
Monthly interest payment: The annual interest rate, split into monthly instalments.
Rolled up: The interest is accrued, added to the outstanding principal loan amount, and paid at the end of the term in one go.
Deferred interest: Interest payments are deferred for a specific period of time, often a few months. For example, if you defer interest for 3 months, no interest payments will need to be made during that time.
Arrangement fee: A fee taken from the client by a company/lender to organise finance. This may also be referred to as an administration fee.