There are a few options for borrowing money to buy a property at auction in the U.K.

How to finance a property at auction

Mortgages: One option is to apply for a mortgage from a lender. In order to be approved for a mortgage, you will typically need to demonstrate that you have the financial means to make the monthly payments, as well as a good credit history. It is a good idea to get pre-approved for a mortgage before attending an auction, as this can help you determine your budget and give you an edge when bidding on a property.

Bridging loans: Another option is to apply for a bridging loan, which is a short-term loan that is used to “bridge” the gap between the purchase of a property and the completion of a long-term financing arrangement, such as a mortgage. Bridging loans can be a useful option for buyers who need to complete the purchase of a property quickly, but may not have all of the funds available upfront.

Personal loans: If you do not have sufficient equity in your current home to use as collateral for a bridging loan, you may be able to obtain a personal loan to help finance the purchase of a property at auction. Personal loans are unsecured, meaning they do not require collateral, and can be used for a variety of purposes, including purchasing real estate.

Cash: Finally, you can also consider using cash to finance the purchase of a property at auction. This may require saving up funds over time or liquidating assets, such as stocks or investments, in order to come up with the necessary cash.

It is important to carefully consider your financial situation and the terms of any loan you are considering before borrowing money to buy a property at auction.

It is also a good idea to seek the advice of a financial professional, such as a mortgage broker experienced in these types of loans , who can help you explore your options and make an informed decision.

Speak with an Auction and development bridging specialist.

Risk Warning: The Financial Conduct Authority does not regulate some forms of Buy to Lets. Your home/property may be repossessed if you do not keep up repayments on your mortgage.