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Auction finance calculator

Our auction finance calculator is a tool for landlords and property investors to work out example monthly interest payments on auction finance.

The auction finance products we broker are not for the home you will live in, they are for auction purchases where you will be:

  • Flipping property
  • Letting a residential property to tenants
  • Letting a commercial property to tenants
  • Running your business from the property

Auction finance covers the cost of the property purchase. If you are renovating the property you will need to cover the cost of the work yourself. You can borrow up to 75% of the property value.

Auction finance interest is either paid monthly (a ‘serviced’ loan) or the interest is added at the start of the loan and paid off when the loan is redeemed (a ‘retained interest’ loan payment).

Our auction finance calculator uses current rate examples, available from the range of lenders we work with, to give you an idea of what monthly payments could look like at your loan to value.

It is not a full product illustration, or a guarantee of the rate you can secure.

Our advisors can provide you with an illustration tailored to your needs and circumstances. As well as finding you auction finance, we can also help you with a robust exit strategy to pay off the loan.

Calculate monthly payments

Please select a repayment type
£
Property value.
£
Loan amount is required.
Term length is required.
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE
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Frequently asked questions

You can buy a property at auction using cash, but if you do not have the available funds, there are finance options available. 

Auction finance is a type of bridging loan, which is secured against the property you are buying. Interest is charged monthly and can be paid monthly or at the end of the term. 

This type of loan is suited to property auctions because it is faster to arrange than a mortgage, and doesn’t require the property to be fit for human habitation (where a mortgage would).

Auction finance comes with a monthly interest rate. The rate you can get depends on the deposit you have (you will need at least 25% of the property value), and the property you are buying. 

If the property needs lots of large scale work doing to it, such as anything that requires planning permission or similar (“heavy refurbishment”), rates tend to be higher. If you are only doing more superficial work on the property, such as redecorating and/or refitting a kitchen or bathroom (“light refurbishment”) rates tend to be lower.

If you want funds fast (e.g. within a few days), you are likely to pay a premium rate, but if you are in no rush rates may be lower. 

Aside from interest, you will pay a valuation fee, a product fee (which can be 1-2% of the loan amount) and an administration fee.

There are two reasons why using a mortgage to finance an auction property purchase can be tricky. The first is that mortgages take a much longer time to arrange than auction finance. 

The second is that a mortgage requires the property you are buying to be fit for someone to live in straight away, where sometimes auction properties are run down and would not meet this requirement.

If this is the case, you can much more easily get auction finance, which is a short-term loan you can take out over 3-24 months, which you can pay back with long term finance (e.g. a mortgage) or through the proceeds of selling on the property at a profit (typically after renovating it).

Room full of people facing an auctioneer