Ordinarily, yes, there aren't any restrictions on the types of property you can buy using auction finance.

• Residential purchases can be financed with a bridging loan, although your lender must be regulated if you plan to live in the home. The typical exit strategy would be a residential mortgage.
• Unregulated lenders can finance commercial or mixed-use auction properties through a bridging loan. However, some lenders will put restrictions on investments they consider higher risk, such as a petrol station.
• You can't purchase uninhabitable properties with a regular mortgage, so auction finance is a good alternative. Bridging loans are far more flexible, and so you can buy a low-price auction lot, renovate the property, and sell it at a profit. The lender will need to know whether you have completed any similar developments in the past and what contingency plans you have for the development budget,

If you are considering buying an unusual property at auction, please get in touch with the Revolution team, as we will be able to advise on the best lenders and financing options available.

Revolution deals with hundreds of auction property finance applications - and our role is to ensure you get the right deal, at the best rates, from the most suitable lender.

There are several factors to consider, so the team can provide independent support to help you make informed decisions. For example:

• If you buy a residential home, you need a property auction loan from an FCA regulated lender.
• For commercial properties or investments, you can use an unregulated bridging loan provider with greater flexibility.

Choosing the right lender is essential since an unregulated lender will be able to offer a loan based on rental income expectations rather than basing their offer on your salary or annual income.

Lenders will assess every application individually, but they will always consider the following factors in deciding what interest rates to offer:

• Exit strategy - the more secure your exit strategy, the better the deal. Usually, that is through a remortgage or selling a property. If you have a mortgage agreement in principle on the table, for example, that will strengthen your application.
• Credit history - although auction finance is more flexible, we strongly advise seeking guidance from an independent broker if you have any issues with your credit history. Some lenders are stricter than others, and so it's wise to ensure you're applying to the most suitable provider.
• Property experience - you don't need to be an experienced developer to get a property auction finance loan. Still, if you plan to renovate or develop a dilapidated auction investment, it can help. But, again, it's all about assessing the borrowing you need and recommending the right lender.
• Deposit - the more significant your deposit, the lower the lender's risk and the better interest rates they can offer. If you have a minimum deposit of around 25%, you can often still find auction finance but won't be offered competitive interest rates as if you have a higher 40% down payment.
• Security - auction properties can vary vastly in condition and value. If you buy a sellable home in reasonable condition, your rates will be lower than purchasing a major development project or one where it is difficult to assess the final sale value.

The best way to secure the lowest possible interest rates on your property auction finance is to deal with an independent, whole-of-market broker, such as Revolution Finance.

We compare all of the deals on the market to provide tailored guidance, ensuring your application is approved without a hitch. So give us a ring on 0330 304 3040, or email us at info@revolutionbrokers.co.uk.

Yes! You can take out a bridging loan as a limited company on a similar basis to a buy to let mortgage. Some lenders will ask for the director's personal guarantees as added security.

Provided you have a reasonable exit strategy to show how you will repay the bridging finance; you can use an auction finance loan to buy any property at all.

Potentially, yes, bridging loans can be used for any purpose, provided the lender is happy with the deal and the security you have to offer.