Editor's note: This brief was summarised by The Property AI Newsroom from a report by PropertyWire. Read the original article for full details.

United Trust Bank Delivers £600,000 Bridging Loan for Auction Purchase in Six Days

United Trust Bank has completed a £600,000 regulated bridging loan within six days, enabling borrowers to meet the completion deadline for an auction purchase of a Grade II listed five-bedroom detached property. The transaction was arranged through Clifton Private Finance, with the property secured at auction for £959,000.

The bridging finance was secured with a first charge on the auction property and a second charge on the borrowers’ existing home, which had received an offer but had not yet reached exchange. The exit strategy for the loan involves proceeds from the sale of the existing property and a mortgage on the newly acquired home after light refurbishment works.

Automated valuation models (AVMs) were used on both security properties, removing the need for physical valuations. JMW Solicitors LLP provided dual legal representation for both the lender and the borrower.

The case highlights the operational requirements for auction finance, where completion deadlines typically fall within 20 to 28 days of the auction date. The use of AVMs and dual representation reflects recent efforts by property professionals to streamline transactions and reduce completion times across the sector.

The bridging finance sector has seen increased activity as buyers seek flexible funding solutions for time-sensitive purchases. This transaction demonstrates how bridging loans can facilitate auction purchases where traditional mortgage processes may not meet mandatory deadlines imposed by auction houses.