Buying at auction

When you buy a property at auction, contracts are exchanged on the fall of the hammer and completion is usually required within a fixed period, often 28 days. A conventional mortgage can rarely be arranged in that time, which is where auction finance comes in.

How auction finance helps

Auction finance is a form of bridging loan arranged at speed to meet the auction deadline. An agreement in principle can often be obtained before the auction so that you can bid with confidence, and it can fund properties that are not suitable for mortgage lending in their current condition, for example those needing refurbishment.

The exit

Once the purchase has completed, the loan is normally repaid by refinancing onto a mortgage, often after works have been carried out, or by selling the property.

Expert advice

SM Finance’s specialist team will take the time to understand your plans and approach the lenders best placed to support them, from high street banks to specialist funders. Call us on 020 4511 9511 to discuss your requirements.

Your property may be repossessed if you do not keep up repayments on a mortgage or any other loan secured on it.