Utilising an Upfront Process to Speed Through an Auction Loan Application

Loan Amount:
£100,000

Property Value:
£150,000

LTV:
70%

Auction purchases usually need to be planned out and wrapped up within mere weeks. Bidders usually need to complete within 28 days, meaning funding needs to be issued asap.

A borrower turned to us for this very reason. They required funds to secure an unoccupied property found at auction. They had already put some money into the property, raising its EPC rating in the process, and now they needed us to help finalise the investment.

Our underwriter moved quickly to address all the necessary due diligence, and support the borrower’s plans.

Starting as you mean to go on

Given the short timeframe involved, the underwriter got straight to work on the valuation and other parts of the process. We quickly determined the property offered a good security in a popular location.

The client wanted to complete some light refurbishment work, and then look to sell the property. Given the property’s potential, this should have been an easily workable strategy.

However, should it not have sold for any reason, obtaining a tenant to bring in income would also have been a viable option.

As the property was in a prime location, it was likely the investor would have no real problem in finding a buyer, or a tenant. Knowing this, we issued funding, allowing the borrower to lock-in the property ahead of any looming deadlines.

We provide more than just loans

Auction demand, especially online demand, has ramped up in recent years. There are opportunities to be discovered at the UK’s auction houses. But given how quickly the bidding moves, property investors will want to be prepared.

This is why we have created many useful tools and resources over the last few months to support your investment goals.

We have a property auction finance guide which breaks down everything you need to know about how specialist funding can help you, along with an auction finance calculator, which will allow you to budget ahead of time.

We pride ourselves on going above and beyond to support, educate, and guide property investors. If you’d like to work with a lender who truly wants you to succeed, feel free to reach out.

FAQs

What is the importance of unoccupied property for the housing market?

Refurbishing and flipping unoccupied properties can help ease the UK’s housing shortage – a key priority for the Labour government. Vacant homes represent untapped potential for investors to create much-needed housing and support community regeneration.

With flexible bridging finance, investors can quickly acquire and improve these assets, bringing them back into use and unlocking their value.

Is an EPC rating mandatory for residential and commercial properties?

Yes. An Energy Performance Certificate (EPC) is legally required whenever residential or commercial properties are built, sold, or let – including lease renewals. Currently, commercial properties must have at least an E rating to be let, unless a valid exemption applies. This minimum will increase to C rating in 2027 and to B rating by 2030.

For residential properties, the current minimum rating is E. There are proposals to increase this to C by 2030, but this is not a law yet.

Do you have a minimum EPC rating my property must have to get a loan with you?

Yes. To qualify for a loan with Market Financial Solutions, your property must have a minimum EPC rating of E or above. This aligns with current UK energy efficiency regulations, which prohibit letting or refinancing properties below this threshold unless an exemption applies. Our flexible bridging finance solutions can also help landlords improve EPC ratings to meet upcoming regulatory changes, such as potential C rating requirements for commercial buildings by 2027.