Delivering Auction Finance Quickly for a First-Time Landlord

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Recent days have highlighted how quickly fortunes can change. Property investors have been beset by major tax changes, and an unprecedented global trade war in quick succession. There may be a small window of opportunity here for some property investors however, and specialist finance could help them realise it.

In the run up to the stamp duty deadline[1], many buyers turned to auction houses to secure their assets before costs had a chance to rise. Indeed, record numbers of homes[2] have been listed for sale in recent weeks as everyone tries to get ahead of various looming tax changes[3]. Chances are, we could see more homes turn up in auction houses as owners desperately try to abandon the market quickly.

Somewhat surprisingly, property investors may be able to benefit from what’s going on in the news here. Unexpected trade tariffs have dramatically affected the world economy in recent days. But many experts believe this could actually lead to mortgage rate cuts soon.

Traders expect the Bank of England to cut rates in response to these developments, and cheaper deals could be here as soon as May[4]. Say a property investor takes note of this, and wants to act before it’s too late.

They may find a perfect residential investment at auction, and want to wrap up the purchase, and ready themselves for a refinancing exit strategy before the Bank of England’s next base rate vote. This leaves us with only a few weeks to act.

To meet this timeframe, we could utilise our auction bridging finance. This form of specialist finance is designed from the ground up to accommodate the fast pace of the auction world, and could be delivered within the 28-day deadline auctions houses usually have in place.

But, of course, securing better terms when it comes to the exit strategy cannot be guaranteed. To accommodate this reality, we may include a number of contingencies for the deal. We’d likely need to see evidence that the borrower was in talks with third party lenders for the refinancing.

Also, we may require that a contingency be put in place to have a backup exit strategy. In this kind of case, a borrower could refinance onto our bespoke BTL mortgage product should it end up being more prudent to secure income from their new asset via tenants.

Adaptation is crucial in the property market. Especially when opportunities, or threats, can emerge with little warning, and disappear just as quickly.

FAQs

How fast can you provide auction finance?

We understand auction scenarios require speed. We can issue indicative terms within hours, and funds can be delivered in as little as three days once terms are agreed. This fast-track process ensures clients can meet tight auction deadlines even under exceptional time pressure.

What makes your auction finance different from other lenders?

Our auction bridging loans are designed for speed and flexibility. We fund assets ranging from residential homes to commercial and mixed-use property, with loans starting at £100k and reaching up to £50m. Because we can access in-house capital and diverse funding lines, we can act quickly without waiting on third-party approvals. Our tailored underwriting ensures we cover everything from unoccupied properties to refurbishment plans.

What do you need from me to issue funds quickly for an auction purchase?

We move fast by preparing early. If you can provide any relevant documents like property details, valuation, status (eg unoccupied), plans for refurbishment or exit, and proof of funds or buyer profile, our underwriters can begin due diligence immediately. This front-loaded process helps us deliver funding ahead of auction deadlines.

Are there trends making auction finance more important today?

Absolutely. With high interest rates and tighter lending criteria, auction houses are seeing increased demand from investors seeking quick deals. Yet many traditional lenders can’t keep pace with 28-day completions. That’s where specialist auction finance makes a difference – ensuring buyers can respond swiftly and confidently.