As principal lenders of auction finance, Charterbank can provide you with a fast, short-term loan to purchase an auction property on a non-status basis for virtually any type of property in any condition.
We believe that finance for an auction purchase should be simple and straight forward. The arrangement fee and legal costs can be added to the loan.
The monthly interest can be rolled up into the final redemption payment (not deducted from the advance) and is calculated on a daily basis.
Charterbank can provide immediate quotes for a loan to purchase your desired auction property. But if you are intending to bid, it is important to arrange the relevant loan before the auction. If you have already purchased a property at auction, or you have been let down by your existing lender, speak to us today about immediate assistance.
• Products from 3-12 months • Immediate decisions • Up to 65% (net) LTV • Ltd Companies accepted • Self cert non status loans • No monthly interest payments • No upfront fees • No exit fees • No penalties • No red tape
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Can you get a loan for an auction property?
Yes. Finance for an auction purchase – commonly referred to as auction finance – is a form of fast short-term finance/secured loan that is available to help you buy a property at auction.
Anyone can apply. Property investors, private individuals, those looking to buy their first development property at auction. Property developers and builders can borrow as a company with no personal guarantees and no debentures.
How does auction finance work?
The loan facility is secured against the property that is being purchased, in the same way as a mortgage.
Lending decisions are made quickly but with surety and are based on simple common-sense principles and underpinned by the property security, not the credit status of financial status of the borrower.
In complete control
Reliable decision making from the very outset, every time
Common auction scenarios
Common auction finance scenarios include the purchase and refurbishment of a property, a break up opportunity, buying a property speculatively for a potential planning gain (for example a closed down pub to develop into houses or flats) or buying land without planning permission.
You might also want to purchase property to renovate/refurbish and let or buy to convert into an HMO.
How can property auction finance be used?
This sort of finance can help you buy any type of property at auction. For example, non-status auction finance facilities provided by Charterbank can be used to help you buy and refurbish a property. Once refurbished, the property may be sold for profit or let and re-financed to repay the auction finance. Charterbank do not provide facilities for owner occupiers, even if the intention is not to move in straight away.
Charterbank auction finance/loan facilities are available to help purchase the following types of property at auction: land, houses and flats, building plots/land with or without planning permission, commercial, industrial and mixed-use property.
Is auction finance right for you?
If you are looking to purchase a property at auction and need finance to help you complete the purchase, contact us today. Charterbank provide alternative solutions for buying property at auction including bridging finance, which can be obtained at short notice, secured against existing properties that you own. Do get in touch with us before the auction for a decision in principle and a pre-auction finance quote.
Find out more information about common loan scenarios.
You can contact us for an informal discussion about your finance requirements. Or click here to apply for a loan to secure an auction property.
Auction finance FAQs
How long is an auction finance term?
Like all of Charterbank Capital’s loan facilities, auction finance is short-term. Auction finance terms range between 3-12 months.
How much can I borrow with auction finance?
Charterbank Capital offer up to 65% (net) LTV. This means you would be required to pay a deposit of 35%, assuming the maximum loan value of 65%.
Why use a specialist property auction finance lender?
When buying a property at auction, time is of the essence when it comes to completion. Therefore, using an experienced auction finance lender is critical to the success of your purchase. Whether it’s your first time buying at auction, or you’re a seasoned auction buyer, the process is not always 100% straightforward and having the knowledge from Charterbank Capital can be crucial if problems do arise.
Can I use auction finance to fund development costs?
Yes, our auction finance can be used to fund the acquisition and development costs regardless of the property you buy at auction.
Can I only use auction finance to buy property?
No, you’re not just limited to residential properties with auction finance. Charterbank Capital’s auction finance can be also used to purchase the following at auction: land, flats, commercial property, industrial property and mixed-used property.
Will I have to pay a deposit when I buy at auction?
Yes, the majority of auctioneers will require around a 10% deposit when you win the bidding for a property or plot of land. You will need to have this available as it needs to be paid instantly.
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