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AUCTION FINANCE

AUCTION BRIDGING FINANCE

WHAT IS AUCTION FINANCE AND HOW IT WORKS?

USING BRIDGING FINANCE TO BUY AT AUCTION

Auction finance is a strategic financial tool for property investors which offers a swift and efficient way to fund purchases at property auctions. This type of financing is designed to match the unique pace of auction sales, where winners must typically pay a 10% deposit immediately and the balance within 28 days. 

Traditional commercial mortgages or loans often can’t meet these tight deadlines, but auction bridging loans fill this gap. It allows investors in Ireland to bid confidently, knowing they have access to quick, short-term funds. Once the property is secured, investors can either settle the loan through long-term financing options or the sale of the property. 

Essentially, auction finance provides a flexible and rapid solution for investors to capitalise on auction opportunities without the usual financial delays.

Auction Loans

BRIDGING LOANS FOR AUCTION PURCHASES

The main advantage of using bridging loans for auction purchases is the quick application and approval process which ensures the funding necessary to buy commercial property or land at auction in Ireland is available within the required timeframe. 

 

Novellus offer bridging loans for a wide range of auction opportunities:

  • Commercial and semi-commercial properties (office spaces, retail units, warehouses etc.)
  • Land with or without planning permission
  • Refurbishment projects
  • Industrial properties such as factories and workshops
  • Uninhabitable properties
  • Residential investments (HMOs, Buy to lets, Social housing etc.)
  • Hotels, pubs, shops and other investment properties.
  • Novellus do not offer mortgages on family homes / private dwelling homes.

Auction Loans

WHY CHOOSE NOVELLUS?

Novellus, as a specialist auction finance lender often approves applications in just a few days which means funds would be available to make the 28-day deadline on an auction purchase.

Other advantages of using our auction lending solutions in Ireland include:

  • Quick application/approval process.
  • It’s possible to pre-arrange a bridging loan before the auction. If the bidder is successful, the loan can then be fully approved.
  • Each case is underwritten on its merits (no fixed products).
  • A swift decision is guaranteed on all applications ensuring the funds are in the bank immediately after the approval and legal process.
  • No early repayment fees.
  • Our auction finance loans range from €500,000 with no upper limit.

Auction Loans

GETTING AN AUCTION BRIDGING LOAN

To qualify for auction finance, the borrower must take into account the following:

  • A high-value asset must be available as collateral to secure the loan (usually the property being acquired and / or another significant asset).
  • The borrower must have a feasible exit strategy on how they plan to repay the loan (for example, through the sale of the property or by securing long-term financing).

At Novellus, the auction loan approval is predominantly based on the borrower’s ability to repay within the agreed timeframe, rather than focused only on income or credit history, though these factors are also reviewed in the application process.

Auction Loans

WHY CHOOSE AUCTION BRIDGING FINANCE?

Other than quick completion time, from application to approval, there are numerous reasons why borrowers should consider using auction loans:

  • Anyone in need of fast auction finance can apply as every application is considered individually.
  • Borrowers can often negotiate the repayment terms to suit their circumstances, especially if they have a clear exit strategy.
  • It can be used for purchasing non-standard properties (such as uninhabitable properties and those needing renovation) which might not qualify for traditional commercial mortgages.
  • The loan period is generally 6-12 months, but it can be repaid at any time within the set term with no early repayment fees at Novellus (save for the notice period to repay).
  • Even though borrowing at higher LTV is common, if another property is used as additional security it may be possible to get further borrowings.
  • Borrowers deal directly with the principal which ensures the application process is a swift one and a quick decision is guaranteed on all applications.

Find out more

To help discover the approximate costs involved with bridging finance use our online bridging loan calculator for guidance.

Novellus offers a stress-free application process.

To find out if you qualify simply call us today on +353 1 531 4237 or fill out our quick enquiry form below.

Quick Enquiry

Any data you provide Novellus Finance will be used in the decision making and processing of any future loan. The data we collect will be shared with our legal representatives and potentially other third parties to assess your suitability and for future transactions on any loan(s) with Novellus Finance. We will hold information securely for up to 7 years after your contract with Novellus Finance ends. Should you wish for us to delete all traces of data we hold about you after your contract expires or should you wish to request details of data we hold about you please email [email protected]

About
Ireland
Contact

100 St. Stephen’s Green, Dublin, D02 EP84

+353 1 531 4237
[email protected]

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©2023 Novellus Finance is a trading style of Novellus Finance Limited registered in Ireland.
Company No. 710946. Registered address: Novellus Bridging, 100 St. Stephen’s Green, Dublin, D02 EP84

THINK CAREFULLY BEFORE SECURING ANY DEBT AGAINST YOUR PROPERTY. YOUR PROPERTIES MAY BE AT RISK IF YOU DO NOT MEET THE COMMITMENTS OF YOUR LOAN