Bridging Loan for Auction Purchase at 70% Loan to Value

Deal Structure

• 70% Loan to Value (LTV), based on Open Market Value
• Interest rate: 0.45% per month
• 1% arrangement fee
• No additional broker fee
• No application fee
• No administration fee
• No exit fees or Early Repayment Charges (ERCs)

Deal Summary

Our experienced landlord client agreed to purchase a property before it went to auction. However, the transaction remained subject to auction conditions, meaning completion was required within 28 days.

The property was already habitable and only needed cosmetic improvements. The client planned to complete a light refurbishment before letting the property to maximise its rental income.

We were instructed to find the most competitive bridging loan for an auction purchase at 70% Loan to Value. Thanks to the client’s extensive experience as a landlord, successful track record of refurbishing properties and available funds to cover the refurbishment costs, we were able to access highly competitive lending options.

After searching the market, we secured a bridging loan with an interest rate of 0.45% per month and a 1% arrangement fee. The facility also included no additional broker fee, no application fee, no administration fee and no exit fees or Early Repayment Charges (ERCs). In addition, the valuation and legal costs were highly competitive, helping to keep the overall cost of borrowing as low as possible.

The client accepted the offer, and we completed the transaction comfortably within the required 28-day auction deadline. This allowed them to begin the refurbishment immediately and move forward with their investment strategy to maximise the property’s rental potential.

If you are purchasing a property at auction and need fast, competitive finance, our team can search the market to find a bridging loan for an auction purchase that meets your timescales and funding requirements.