United Trust Bank has completed a £600,000 regulated bridging loan within six days, allowing borrowers to meet the completion deadline on an auction purchase of a Grade II listed five-bedroom detached property.
The transaction was arranged through Clifton Private Finance, with borrowers having secured the property at auction for £959,000. The bridging finance was secured against 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 stage.
Transaction structure
The loan’s exit strategy combines proceeds from the sale of the existing property with a mortgage on the newly acquired home following light refurbishment works. Automated valuation models (AVMs) were used on both security properties, eliminating the need for physical valuations. JMW Solicitors LLP provided dual legal representation for both lender and borrower.
Rebwar Abdoullahi, business development manager for BTL and bridging at United Trust Bank, said: “Auction purchases leave very little room for delay, so brokers and borrowers need complete confidence that their lender can move quickly and deliver what they promise.”
The case highlights the operational requirements for auction finance, where completion deadlines typically fall within 20 to 28 days of the auction date. Recent moves by property professionals to streamline transactions have focused on reducing completion times across the sector.
Paige Dumpleton, senior finance broker at Clifton Private Finance, said: “The clients needed a lender capable of acting quickly and confidently on a time-sensitive auction purchase, and UTB delivered exactly that.”
Market context
The bridging finance sector has seen increased activity as buyers seek flexible funding solutions for time-sensitive purchases. The use of dual representation and automated valuations represents a shift in how lenders and brokers operate within compressed timeframes.
The transaction demonstrates the operational requirements for auction purchases, where traditional mortgage processes cannot meet the mandatory completion deadlines imposed by auction houses.
