How Much Deposit Do I Need For A Commercial Mortgage?

Determining the deposit required for a commercial mortgage is a crucial step in your business’s financial planning. Unlike residential mortgages, commercial mortgages offer more flexibility in assessing applications, which means deposit amounts are somewhat negotiable. In this blog, we’ll explore the factors influencing the deposit amount for a commercial mortgage, discuss options for borrowers with varying deposit sizes, and emphasize the role and importance of an experienced commercial mortgage broker in securing the best deal.


How Much Deposit Do You Need for a Commercial Mortgage?

A commercial mortgage normally requires a deposit in the region of 20% to 40%. However, this amount can change depending on a number of variables, namely the perceived risk of your loan application. Lenders assess various factors to determine the deposit requirement.


Factors Affecting Deposit Requirements:


It’s important to note that some lenders may impose minimum deposit amounts regardless of the loan-to-value ratio. Below are some of the factors the affects the deposit requirements:

  • Industry Experience: Established and successful businesses are viewed as lower risk and may secure a loan with a lower deposit.
  • Profitability: A solid business plan, strong financial results over several years, and positive forecasts reduce the risk for lenders, potentially leading to a lower deposit requirement.
  • Business Type: Certain businesses, such as pubs or clubs, may be considered higher risk, leading to larger deposit requirements compared to businesses in less risky sectors.
  • Credit History: Adverse credit history for either the business or individuals involved can increase deposit requirements due to perceived higher risk.
  • Loan Type: Owner-occupiers seeking commercial properties for their own use may require lower deposits than those taking out commercial investment mortgages, which are similar to buy-to-let mortgages.
  • Property Type: Non-standard construction or properties needing significant renovations may necessitate a higher deposit.


Options for Borrowers with a Low Deposit


Borrowers with a limited deposit can explore various options:

  • Use Other Assets as Security: Borrowers can secure a commercial mortgage with a low cash deposit by offering other assets as collateral. These assets may belong to the business or the borrower personally. Equity in another property or equipment can serve as collateral.
  • Combination of Cash and Assets: It’s common to combine cash and assets to form a deposit, allowing for more flexibility. However, a low deposit may limit the number of available lenders and potentially result in higher interest rates.


How to Fund Your Deposit?

While cash is the straightforward method for the deposit, lenders understand that not everyone has substantial cash reserves. Therefore, they may consider alternative methods, including:


  • Working Capital: Using business working capital as part of the deposit.
  • External Investment: Seeking external investment or partnerships to fund the deposit.
  • Bridging Finance: If the intent is to sell the property shortly, bridging finance can be used as a short-term solution to secure the property.
  • Commercial Finance: Exploring commercial financing options to contribute to the deposit.


How a Broker Can Help?

A professional broker at Property Finance Compare can provide guidance on the most suitable funding option based on your specific circumstances. Since, navigating the complexities of commercial mortgages, especially when dealing with varying deposit amounts, requires insider knowledge. A whole-of-market broker, experienced in commercial mortgages, can identify lenders willing to work with your specific situation and negotiate favorable terms. Brokers at PropertyFinanceCompany can advocate on your behalf and negotiate deals tailored to your deposit amount. Whether you have a substantial deposit or none at all, a broker can save you significant sums over the loan term.



Securing a commercial mortgage with the right deposit amount is a critical step for businesses. With the help of an experienced commercial mortgage broker, you can navigate the complexities, explore funding options, and secure the best possible deal for your unique circumstances. If you’re seeking a commercial mortgage, consider consulting with a professional broker at Property Finance Compare to maximise your chances of success.

All You Need to Know About Martin Lewis Secured Loans for Debt Consolidation

Dealing with multiple debts can be overwhelming, both financially and emotionally. However, there’s a financial expert who has made it his mission to help people regain control of their finances: Martin Lewis. In this blog post, we’ll explore the world of Martin Lewis secured loans for debt consolidation. We’ll delve into what secured loans are, how they work, why they can be a valuable tool for consolidating debt, and how Martin Lewis, a renowned financial guru, can guide you in making the right financial decisions.


What is Martin Lewis Secured Loans for Debt Consolidation?

Martin Lewis advises against secured loans for debt consolidation, emphasizing that they come with significant risks and are best avoided in most cases. Martin Lewis’s view on secured loans for debt consolidation is highly negative. He recommends considering other financial options and sees secured loans as a risky choice, primarily due to the potential loss of one’s home in case of non-payment. Borrowers are encouraged to explore alternatives that offer better terms and lower risks. Here’s a breakdown of his perspective:


  • Definition of Secured Loans for Debt Consolidation: Secured loans for debt consolidation are financial products where individuals use an asset, often their home, as collateral to secure a loan. The purpose of these loans is to combine various existing unsecured debts into a single, more manageable loan.
  • Risks of Secured Loans: Martin Lewis strongly cautions against secured loans for debt consolidation, primarily due to the associated risks. While these loans may promise a “one manageable monthly payment,” they are expensive and pose a substantial risk of losing one’s home.
  • Security for the Lender, Not the Borrower: Lewis underlines that secured loans offer security for the lender, not the borrower, and that this is the case with secured loans. The lender’s interests are safeguarded despite the collateral, while borrowers risk losing their homes if they default on the loan.
  • A Financial Nightmare: Lewis categorizes secured loans as a “financial nightmare” and advises borrowers to explore alternative options. He believes that taking out a secured loan should be considered a last resort due to the inherent risks involved.
  • Consider Unsecured Personal Loans: According to their unique financial circumstances, Martin Lewis advises people with fair credit ratings to look into options like unsecured personal loans, aggressive credit card offers, or even extending their mortgage.

Secured Loans vs. Unsecured (Personal) Loans

Martin Lewis highlights that unsecured loans are the preferred option, despite them still being a form of debt. Your future credit eligibility may be impacted if you default on an unsecured loan because missing payments will show up on your credit report. However, unsecured loans are a safer option for the majority of borrowers because the danger to your house is lower than that of secured loans. Martin Lewis highlights the benefits of unsecured (personal) loans while outlining the key distinctions between secured and unsecured loans:


Secured Loans:

  • Your home is used as collateral, and it may be at risk if you can’t make repayments.
  • Rates are typically fixed, providing clarity on monthly payments.
  • Loan terms are commonly 5 years or less.


Unsecured (Personal) Loans:

  • Your home is generally safe if you can’t make repayments, although there’s a minimal risk.
  • Rates are often variable, so monthly payments may fluctuate.
  • Shorter borrowing periods (5 years or less) are recommended as they result in lower overall interest payments.


Alternatives to Secured Loans

Martin Lewis provides several alternatives that individuals should consider before resorting to secured loans, particularly when trying to cut the cost of existing debts. Martin Lewis strongly advises against secured loans and encourages individuals to explore alternative methods for managing their debts. These alternatives include using savings, preserving credit cards for emergencies, considering balance transfer credit cards, utilizing the credit card shuffle, and, when necessary, opting for unsecured loans. These options are typically more financially sound and less risky than secured loans. Here are the alternatives he recommends:


  • Use Savings: Lewis suggests using any available savings to pay off debts. Since the interest earned on savings is typically lower than the interest charged on borrowing, using savings to eliminate debts can be a sensible financial move. He advises against traditional advice to maintain an “emergency cash fund” and instead advocates using savings to pay off debts.
  • Preserve Credit Cards: Instead of cutting up credit cards after paying off debts, Lewis advises locking them away for emergency use. This way, individuals can avoid incurring additional debt and save on interest costs. If no emergency arises, they can start building an emergency cash fund.
  • Balance Transfer: If you have credit card debt, Lewis recommends exploring balance transfer credit cards. These cards often offer a 0% interest rate on transferred balances for a specific period. By transferring existing credit card debt to such a card, individuals can reduce interest costs.
  • The Credit Card Shuffle: Lewis introduces the concept of the “credit card shuffle,” which involves taking advantage of special rates offered by existing credit card companies to move other debts onto those cards. By shifting balances and focusing on repaying high-interest debts first, individuals can achieve significant savings.
  • Unsecured Loans: Lewis reiterates that unsecured loans are a more cost-effective and less risky option compared to secured loans for those who qualify. Unsecured loans can be used to consolidate existing credit and reduce interest expenses.


Wrap Up

When it comes to managing multiple debts and considering secured loans for debt consolidation, it’s crucial to seek the advice of a financial expert like Martin Lewis. Dealing with various debts can be a daunting challenge, both financially and emotionally. Martin Lewis offers valuable insights and guidance to help individuals make informed financial decisions.


Martin Lewis’s expert advice underscores the importance of carefully considering the risks and alternatives before pursuing secured loans for debt consolidation. It’s essential to prioritise financial stability and minimize risks when addressing multiple debts, and exploring alternatives is often the more prudent path to take.

Is Halifax Your Best Option for Obtaining a Secured Loan?

Many people in the UK consider Halifax as a reliable financial services provider when looking to receive a secured loan. Halifax offers a range of loan options to satisfy the needs of a wide range of consumers. Before choosing to apply for a loan from Halifax, it’s crucial to ascertain which type of loan best suits your unique financial situation and demands.


The secured loan is one sort of loan that frequently offers favourable conditions and reduced interest rates. If you’re thinking about getting a secured loan, it’s important to look into the many lending choices offered by Halifax and other reputable UK lenders. You can choose wisely based on your financial demands by contrasting these possibilities.


What is a Halifax Secured Loan?

Halifax offers secured loans, which are also commonly referred to as homeowner loans. A Halifax secured loan is a type of loan that is secured against the borrower’s property or home. These loans are specifically designed for homeowners who have substantial equity in their property and are looking to access additional funds.


Halifax Secured Loan Features

Here are the key features and details of a Halifax Secured Loan:

  • Secured Against Property: A Halifax Secured Loan is secured against the borrower’s property, which means that the property serves as collateral for the loan. This provides a level of security for the lender.
  • Monthly Payments: To repay the loan, borrowers are required to make regular monthly payments that cover both the principal borrowed and any accrued interest.
  • Repayment Terms: Halifax secured loans offer a selection of repayment periods, from several years to decades, allowing borrowers to choose one that fits their financial situation.
  • Loan Amount: A number of factors, such as the equity in your property, your creditworthiness, and the lender’s requirements, will determine your ability to get a Halifax secured loan. Compared to unsecured personal loans, homeowners typically qualify for bigger borrowing amounts.
  • Interest Rates: Halifax offers secured loans with usually lower interest rates than unsecure loans. This gives the lender a security interest in the assets of the borrower.
  • Loan Purpose: Secured loans can be utilized for a variety of expenses, including large purchases, debt consolidation, home renovations, car purchases, funding for weddings, and other significant expenses.
  • Property Risk: A crucial aspect of a secured loan is that, in the event that the borrower stops making payments and defaults on the loan, the lender has the legal right to seize and sell the collateral in order to recover the outstanding debt. Therefore, it is crucial for borrowers to make regular payments in order to lower this risk.
  • Eligibility: To qualify for a Halifax secured loan, you typically need to be a homeowner with a mortgage or substantial equity in your property. Lenders will also assess your creditworthiness and financial situation.


Understanding Home Improvement Loans

An expansion, refurbishments, or other improvements to your home can be financed with a home improvement loan, a specific kind of personal loan. Halifax provides current account clients loans for home improvements with loan amounts ranging from £1,000 to £50,000. You can still apply for a loan even if you don’t have a Halifax current account; the maximum amount you can borrow is $25,000.


One notable feature of Halifax’s home improvement loans is the option to request up to two repayment holidays each year, subject to approval. However, it’s essential to note that interest continues to accrue during these months when no payments are made, potentially extending the original loan term. On the positive side, Halifax does not charge any fees for making extra payments, giving borrowers the flexibility to pay off their loan early, potentially saving on interest costs.


Additionally, if you hold a Halifax current account, the bank often provides information on the borrowing amount you’re eligible for and your likelihood of approval when you request a quote. Importantly, this initial inquiry does not impact your credit score, making it convenient for applicants.


Top Reasons to Consider Halifax Secured Loan:

Halifax secured loans are especially advantageous due to the property collateral, which typically results in lower interest rates. Additionally, they are accessible to individuals with less-than-perfect credit histories, making funding more attainable. Secured loans are versatile financial products suitable for various situations, including:

  • Home Renovations: Secured loans are excellent for financing home renovation projects. These loans are secured against your property, which can potentially increase in value after the renovations are completed.
  • Debt Consolidation: Individuals seeking to consolidate their debts may opt for secured loans, particularly if they have less-than-ideal credit. Lower interest rates offered by secured loans can make debt consolidation a more attractive option.
  • Purchasing a New Car: Secured loans can also be used to fund the purchase of a new car. The collateral (property) backing the loan often leads to lower interest rates, making it a cost-effective choice.
  • Funding a Holiday: Whether you’re planning a dream vacation, a new car, or a wedding, secured loans offer a viable solution. If you have sufficient equity in your property, you are more likely to secure approval for the amount you need.


How Much Money Can You Borrow with Halifax?

For homeowners considering secured loans, understanding their borrowing capacity is essential. Homeowners frequently have access to up to 80% of the equity in their real estate. Equity is the sum of the current worth of the property and the outstanding mortgage balance. For instance, if a home is worth £250,000 and the owner has an outstanding mortgage with a balance of £50,000, they have £200,000 in equity. The maximum amount that Halifax and other lenders could permit borrowers to access in this case is £160,000, or 80% of the £200,000 equity.


To determine how much you can borrow and estimate monthly repayments, you can utilize a secured loan calculator. This tool enables you to gain insights into your potential loan amount, ensuring that you make informed financial decisions.



When considering secured loans and whether Halifax is the right lender for your needs, it’s crucial to weigh the various loan products available. Comparing loan options from different major UK lenders, like Halifax, allows you to secure a loan that aligns with your financial goals and requirements. For more detailed information and expert guidance on obtaining secured loans, don’t hesitate to reach out to the specialists at UK Property Finance. They can help you navigate the lending landscape and make well-informed borrowing decisions.

When to Consider a Shawbrook Second Charge Mortgage?

When it comes to securing your financial future, it’s essential to be aware of the various tools at your disposal. One such tool that can offer flexibility and financial empowerment is the Shawbrook second charge mortgage. So when is the right time to consider this option? 

Let’s delve into the circumstances and scenarios where a Shawbrook second charge mortgage might be the perfect financial solution for you.


  • Home Renovations and Improvements: Perhaps you’ve been dreaming of a new kitchen, an extra room, or even a complete home makeover. A Shawbrook second charge mortgage can provide the funds needed to turn your renovation dreams into reality. The investment can also add value to your property in the long run.
  • Debt Consolidation: If you’re juggling multiple debts with various interest rates, a second charge mortgage can be used to consolidate them into a single, manageable monthly payment. This can simplify your financial life and potentially reduce your overall interest costs.
  • Avoiding Early Repayment Charges (ERCs): If you’re on your current mortgage’s discounted interest rate, you might hesitate to remortgage, as it could trigger costly ERCs. A Shawbrook second charge mortgage allows you to keep your existing mortgage in place while still accessing the funds you need.
  • Changing Circumstances: Life can be unpredictable. If you’ve experienced changes in your personal circumstances, such as becoming self-employed or facing credit rating challenges since taking out your original mortgage, it may be more difficult to secure favourable terms through remortgaging. In such cases, a second charge mortgage might be a prudent choice.
  • Leveraging Equity: If the value of your property has increased since you initially purchased it, you may have accumulated substantial equity. A Shawbrook second charge mortgage lets you tap into this equity without disturbing your existing mortgage.
  • Big Legal or Tax Bills: Unexpected legal or tax expenses can put a strain on your finances. Utilising a second charge mortgage can provide you with the necessary funds to cover these significant financial obligations.

Now that you have understood when is the right time to consider Second charge mortgage, let’s get back to basics and find out all you need to know about Second charge mortgage.


What is Shawbrook Second Charge Mortgage?

Shawbrook Bank offers Second charge mortgages, which are a type of secured loan or homeowner loan. A Shawbrook second charge mortgage allows homeowners to borrow money against the equity they have built up in their property. It’s called a “second charge” because it sits behind your existing first mortgage, meaning you have two mortgages on the same property. A second charge mortgage, also referred to as a secured loan, is a financial arrangement where you borrow funds secured against the equity you’ve built up in a property you own. It serves as an alternative to options like remortgaging or obtaining an unsecured loan.


How Shawbrook  Second Charge Mortgages Work?

Second charge mortgages work in a manner similar to traditional mortgages. You borrow a specific amount of money and agree to repay it, along with interest, through monthly installments over a predetermined period.


Shawbrook second charge mortgages offer homeowners a means to access additional funds while keeping their existing mortgage intact. The key principle behind these mortgages lies in leveraging the equity built up in one’s property. Equity represents the difference between the current market value of the home and the outstanding balance on the initial (first charge) mortgage. By assessing the available equity, Shawbrook Bank determines the maximum amount a homeowner can borrow through the second charge mortgage.


The borrowing limit depends on several factors, including the homeowner’s income, creditworthiness, and the property’s value. This flexibility often allows borrowers to access larger sums of money compared to unsecured loans or remortgaging. Borrowers specify the purpose of the loan, whether it’s for home improvements, debt consolidation, covering legal or tax bills, or addressing other significant financial needs.


Interest rates and terms are agreed upon between the borrower and Shawbrook Bank. These second charge mortgages provide flexibility in terms of repayment periods, typically ranging from five to 25 years. Borrowers can choose between fixed or variable interest rates, depending on their preferences and financial circumstances.


The crucial aspect of Shawbrook second charge mortgages is that borrowers must make monthly repayments to cover both their first mortgage and the second charge mortgage. These payments are spread over the agreed-upon term. Importantly, the second charge mortgage is secured against the property, which means that, in case of default, the lender has the legal right to repossess the home to recover the outstanding debt.


As part of the application process, borrowers are required to seek independent legal advice. This ensures that they fully comprehend the implications and obligations associated with the second charge mortgage, as well as the risks involved. Throughout the term of the second charge mortgage, borrowers must maintain regular payments on their first mortgage to avoid default. It’s essential to have a clear repayment strategy in place to meet these obligations and prevent financial difficulties.


Are Second Charge Mortgages the Same as Secured Loans?

Yes, the terms ‘second charge mortgage’ and ‘secured loan’ are essentially interchangeable. In addition to being called a secured loan, a second charge mortgage can also go by various names, including:

  • Homeowner loan
  • Home equity loan
  • Second mortgage
  • Debt consolidation loan


How to Apply for Shawbrook Second Charge Mortgage?

To apply for a Shawbrook second charge mortgage, you should follow these general steps. Please note that the specific application process may vary, and it’s essential to consult the Shawbrook Bank website or contact them directly for the most up-to-date and accurate information. You can visit the Shawbrook property finance page for insights and news related to second charge mortgages:

  • Visit Shawbrook Bank’s Website: Start by visiting the Shawbrook Bank website, where you can find a detailed Shawbrook second charge product guide, including eligibility criteria and application requirements.
  • Learn About Second Charge Mortgages: Before applying, take the time to educate yourself about second charge mortgages and how they work. Shawbrook Bank may offer various Shawbrook second charge mortgage product guides, so understanding your needs and financial situation is essential.
  • Contact Shawbrook Bank: Reach out to Shawbrook Bank either through their website or by phone to express your interest in a second charge mortgage. They may provide you with initial information and guidance on the application process.
  • Consult with a Mortgage Advisor: It’s often advisable to work with a qualified mortgage advisor or broker who can assess your financial situation and help you choose the most suitable Shawbrook second charge mortgage product. They can also assist with the application process.
  • Complete the Application Form: You will receive an application form from Shawbrook Bank; please fill it out. You must provide accurate and thorough information on your financial situation, including your income, expenses, and the reason for the loan, on this form.
  • Provide Required Documentation: As part of your application, you must include supporting documentation. This normally consists of identity documents, bank statements, income documentation, and other financial information. To prevent application delays, make sure to promptly submit all required documentation.
  • Credit and Affordability Checks: Shawbrook Bank will conduct credit and affordability assessments to evaluate your creditworthiness and ability to repay the loan. Be prepared for these checks as part of the application process.
  • Independent Legal Advice: You may be required to seek independent legal advice to ensure you fully understand the terms and implications of the second charge mortgage. This is a standard practice to protect the interests of borrowers.
  • Approval and Offer: If your application is successful, Shawbrook Bank will provide you with a formal offer that outlines the terms of the second charge mortgage, including interest rates, repayment terms, and any other relevant conditions.
  • Completion: When you accept the offer, the legal procedure will be finished, and you’ll receive the money from the second charge mortgage to use however you see fit.



Understanding the ins and outs of second charge mortgages, as well as the obligations they entail, is essential. Shawbrook second charge mortgages provide homeowners with access to additional funds, but they also come with the responsibility of making regular repayments on both the first and second mortgages. Contact Property Finance Compare for independent legal advice and consulting with mortgage advisors can help you navigate this financial decision effectively.


When considering a Shawbrook second charge mortgage, it’s vital to weigh the benefits against your specific circumstances and financial goals. These mortgages can empower homeowners to make significant financial moves, but they should always be approached with a clear understanding of the terms and potential risks involved.

The Risks and Benefits of Using Auction Finance for Manchester Property Investments

Investing in property in London can be a great method to create wealth over time. Traditional property purchases, on the other hand, can be time-consuming and expensive, necessitating enormous sums of money and extensive documentation. This is when auction finance comes into play. Whether you’re a seasoned landlord, a property developer, an investor, or a private buyer, auction finance can make the process of purchasing property quick and uncomplicated. In this article, we’ll look at the advantages and risks of using auction finance for Manchester property investments, as well as how auctions work and how to get funding quickly.

What is a Property Auction & What Are They Used for?

A property auction is a platform where purchasers can bid on properties online, in person, over the phone, or through an auctioneer. Buying property at auction may be an exciting experience because there are so many different types of properties available, from land plots with planning permission to commercial buildings and semi-detached houses.

When a property fails to sell on the open market or the seller demands a speedy sale, such as in the case of the owner’s death or repossession, it is frequently placed up for auction. Auctions might thus provide purchasers with the opportunity to catch a bargain or locate a new renovation project. If you’re thinking about buying a house at auction, you should know how the process works.

Who goes to Property Auctions?

While property developers and landlords are frequently seen attending auctions in search of their next project, anyone is welcome to attend. Property auctions allow buyers to skip the lengthy process of property chains and the risk of getting gazumped. Once the contract is signed, the property becomes theirs on the same day, with no other buyers able to intervene. It’s no surprise that property auctions continue to draw a diverse range of bidders, from seasoned investors to first-time homebuyers.

What Are the Benefits of Using Auction Finance for Manchester Property Investments?

Using auction funding for Manchester property transactions might provide several advantages. For starters, it enables a speedy acquisition of the property, which can be advantageous in a competitive market where properties sell quickly.

Furthermore, auction finance can provide flexibility in terms of loan amount and repayment terms, tailored to the borrower’s specific needs. Auction finance lenders are frequently able to lend based on the property’s value rather than the borrower’s credit score, which can be advantageous for those with less-than-perfect credit. Eventually, buying a home at auction can sometimes result in a lower purchase price, and auction financing can help investors capitalize on these cost benefits.

However, as with any type of finance, there are risks to consider, such as the possibility of higher interest rates and fees. Before deciding to use auction finance for a Manchester property investment, it is critical to carefully weigh the benefits and risks.

What Are the Risks of Using Auction Finance for Manchester Real Estate Investing?

While auction financing has many advantages, there are some risks to consider when using it for Manchester property investments.

  • For starters, due to the competitive nature of auctions, there is a risk of overpaying for a property. Bidding wars can cause the price of a property to rise above its true value, resulting in a less profitable investment.
  • Auction homes sometimes require a speedy completion, typically within 28 days, putting purchasers under pressure to arrange finance swiftly. This could lead to higher interest rates or fees, cutting into potential revenues. There is also the possibility of unanticipated property concerns, such as structural issues or legal complications. Before making an auction purchase, it is critical to conduct thorough due diligence and inspections.
  • Auction finance is typically short-term and comes with higher interest rates than traditional mortgages, which may make refinancing or selling the property more difficult if the market changes.

How do I apply for an Auction Finance Loan?

You can apply for an auction finance loan by following these general steps:

  • Research and compare various auction finance lenders to find one that meets your requirements.
  • Most lenders will give you a decision in principle or pre-approval, which will tell you how much you can borrow and what your interest rate might be. For this, you will need to give basic financial details.
  • Once you have a preliminary agreement, you can begin looking for suitable properties at auction.
  • When you identify a property you wish to bid on, make sure you have the appropriate finances and a deposit in place to pay the cost of the property.
  • If your bid is successful, go through the entire application process with your chosen lender. This will entail supplying more extensive financial information as well as property information.
  • Your lender will arrange for the property to be evaluated and legal checks will be performed to confirm the property is appropriate for lending against.
  • If everything is fulfilled, your lender will release the funds to complete the transaction.


For individuals looking to invest in Manchester property fast and effectively, auction funding might be a beneficial instrument. The benefits include the possibility to acquire a property quickly, flexibility in the loan amount and payback terms, and the potential for cost savings on property purchases.

However, there are risks to consider, such as overpaying for a property, the pressure to complete the transaction quickly, and potential unexpected property issues. Before using auction finance for a Manchester property investment, as with any other investment decision, it is critical to carefully weigh the risks and benefits.

Tips to Financing an Auction Property Purchase

Both seasoned investors and first-time buyers looking for uncommon possibilities in the real estate market are drawn to auctions by their magnetic charm. It can be very alluring to compete for a property because of the exhilaration it provides as well as the chance to score a deal on a hidden gem. However, finding the money to pay for a house you win at an auction might be difficult, especially if you’ve never done it before. We have put together a thorough guide with helpful recommendations to assist you successfully navigate this exciting terrain and help you land the property of your dreams.


Know Your Budget, Set Your Limits

Setting a budget is the first step in buying any property, especially at an auction. Determine how much you can easily afford to spend on the home after taking a look at your financial situation. Don’t forget to factor in other expenses like closing fees, renovation charges, and property taxes. Set a ceiling on the highest offer you’re willing to make during the auction keeping your budget in mind. Having a predetermined maximum bid can help you make sensible judgments while under pressure because auctions can be competitive and emotional.


Pre-Auction Financing Preparations

Obtaining financing for an auction property requires proactive preparations. As auctions typically have shorter completion timelines, it’s essential to get your finances in order well in advance. Start by checking your credit score and making any necessary improvements to increase your chances of securing a loan with favorable terms.


Reach out to multiple lenders and explore your options to find the most suitable financing solution. Being pre-approved for a mortgage will give you a competitive edge and demonstrate your seriousness to both the auctioneer and the seller.


Due Diligence is Key

One of the most crucial steps in financing an auction property is conducting thorough due diligence. Unlike traditional real estate purchases, auction properties may have hidden issues that could affect their value and long-term viability. Before the auction, research the property’s history, evaluate its condition, and assess its market value.


Cash vs. Financing

Choosing whether to utilise cash or obtain finance through a mortgage is one of the key considerations you’ll need to make when financing an auction property. Both choices offer benefits and cons. Cash payments provide the benefit of a quicker and easier transaction, which increases the attraction of your bid to the seller.


On the other hand, spreading the cost of the home over time using mortgage finance enables you to keep your financial reserves for other projects. However, this option entails a more difficult process, and if you are not well-prepared, you run the danger of missing the auction because the mortgage process takes longer than expected.


Consider Auction Finance Specialists

Professionals with expertise in providing funds specifically catered to the peculiar needs of auction property purchases are known as auction finance specialists. These experts are accustomed to dealing with the deadline-driven nature of auctions and are familiar with the challenges of financing in such situations. Working with an auction finance specialist can speed up the process because they can set up short-term bridging loans to swiftly secure the property or provide pre-approved financing.


Beware of Hidden Costs

An auction property’s financing entails more than just the winning bid. If your bid is accepted, you will be liable for a number of extra expenses that could come as a surprise to you if you are unprepared. These expenditures may include stamp duty, legal fees, auction fees, and possible renovation costs.


Secure Your Financing Options

It’s time to secure your financing alternatives after you’ve evaluated your budget, done your research, and chosen your financing strategy. If you decide to get a mortgage, make sure your agreement with your preferred lender is complete and that you have all the required paperwork on hand for a quick and easy process.


Don’t Get Caught in a Bidding War

Auctions can be exhilarating, with emotions running high and the temptation to outbid your competitors intense. However, getting caught in a bidding war can quickly lead to overspending and regret. Remember your pre-established limits and stick to your budget.

A useful strategy is to remain patient and let other bidders escalate the price while you wait for the right opportunity to make your move.



Financing an auction property purchase is an adventure filled with excitement and potential rewards. By following these expert tips, conducting thorough research, and planning diligently, you can navigate the auction landscape with confidence. Remember to remain disciplined, stay within your budget, and always have a backup plan. With the right approach, financing an auction property can lead you to uncover hidden treasures in the real estate market and set you on a path to a prosperous future.

Can I Use a Secured Loan to Consolidate Debt?

Debt management can be overwhelming when you’re juggling multiple repayments, each with its own interest rates and deadlines. Fortunately, there’s a solution that can simplify your financial life: debt consolidation through secured loans. In this blog, we’ll explore how debt consolidation can streamline your finances, reduce your monthly outgoings, and help you regain control over your debts.


The Benefits of Debt Consolidation:

When you have several debts, the cumulative interest payments can become a substantial burden. Small individual debts often come with higher interest rates than a single, larger, low-cost loan. Debt consolidation via a secured loan can provide several advantages:

  • Simplified Repayments:

By consolidating your existing debts, you eliminate multiple monthly repayments. Instead, you have one manageable payment to track, making your financial life more straightforward.

  • Financial Savings:

Combining your debts into a single loan can result in significant cost savings due to lower interest rates. This reduction in interest can free up funds for other essential expenses.

  • Debt Control:

Once you’ve consolidated your debts, it’s crucial to avoid accruing new ones. Many individuals choose to cut up or cancel their old credit cards to prevent further debt accumulation.


Who Qualifies for a Secured Loan?

Secured loans are an option for homeowners with an existing mortgage. These loans use your property as collateral, reducing the lender’s risk and making repayments more affordable. Even if you have a less-than-perfect credit rating, secured loans are generally more accessible than unsecured loans.


To qualify for a secured loan, homeowners must ensure that the value of their property exceeds the remaining mortgage amount. Lenders have specific criteria for determining the required equity percentage. While not everyone is automatically approved, secured loans have higher acceptance rates than unsecured loans.


If you’re not a homeowner, alternative financial products like guarantor loans or unsecured loans may be more suitable for your circumstances.


Important Considerations:

While consolidating debts through a secured loan, there are crucial factors to bare in mind:

  • Extended Loan Term: Although monthly payments may decrease, consolidating your debts may extend the overall loan term. This could result in higher total interest payments. Assess whether this option aligns with your financial goals.
  • Budget Assessment: Before consolidating, review your budget to determine affordable monthly repayments. Calculate essential expenses to ensure your financial commitments remain manageable.
  • Future Spending Habits: Debt consolidation solves the immediate problem, but it’s essential to address spending habits to prevent new debts from accruing.
  • Professional Guidance: Consult experts like FinSpace for assistance in finding the most suitable secured loan options. They can ensure that your financial commitments remain manageable and align with your long-term goals.
  • Debt consolidation through a secured loan can alleviate the stress of managing multiple debts, offering a single, affordable repayment. It’s a solution that provides financial stability and paves the way for a debt-free future.



Debt consolidation through secured loans offers a practical and effective way to simplify your finances and regain control over your debts. By streamlining multiple repayments into one manageable monthly payment and potentially reducing interest rates, you can experience financial relief.


However, it’s essential to carefully consider the implications, such as an extended loan term and future spending habits, before consolidating your debts. Seeking professional guidance from experts like FinSpace can help you navigate the process and find the most suitable secured loan options tailored to your financial goals.


Debt consolidation can be a powerful tool on your journey to financial stability, enabling you to focus on a debt-free future with confidence.

Non-Standard Construction Mortgages & How To Get One?

Securing a mortgage for non-standard construction properties can be a challenge, but it’s not impossible. Specialist lenders exist to cater to these unique situations, offering competitive deals on mortgages. While mortgage brokers are often the quickest way to find such mortgages, this guide aims to provide comprehensive insights into non-standard construction properties and the associated mortgage options.


What is a Non-Standard Construction Mortgage?

Non-standard construction mortgages are specialised loans designed for properties with unconventional construction types. These properties deviate from the typical brick-and-mortar structures found in standard homes. Some mortgage lenders are hesitant to offer loans for such properties due to the added complexities and risks involved in assessing both the property and the loan application. However, certain mortgage lenders specialize in non-standard construction properties and provide streamlined underwriting processes with competitive rates, given their understanding of these unique properties.


What Qualifies as a Non-Standard Construction Property?

Several factors can classify a property as non-standard construction. Common examples include properties with:

  • Thatched roofs
  • Steel or timber frames
  • National Heritage Listings with historical or architectural significance
  • Tower blocks or high-rise flats
  • Properties constructed from concrete
  • Pre-fabricated buildings
  • British Iron and Steel Foundation (BISF) properties


Other unconventional features, such as walls made entirely of glass or the use of non-traditional building materials, can also lead to a property being considered non-standard construction. The category is broad, reflecting the wide array of materials and construction methods employed by builders and architects.


Challenges with Non-Standard Construction Mortgages

From a lender’s perspective, providing mortgages for non-standard construction properties poses additional risks and complications. For example, thatched roofs, common in country cottages, require regular and costly maintenance. Lenders consider these factors, which can impact borrowers’ ability to make mortgage repayments. Additionally, the need for roof replacement during the mortgage term can be a significant expense. Fire hazards associated with thatched roofs can lead to higher building insurance premiums, further adding to the risk.


Issues Faced by Banks

Many non-standard properties share drawbacks similar to thatched roofs, such as being:

  • Safety hazards
  • Expensive to maintain
  • Difficult to insure due to safety or security concerns
  • Subject to rigorous inspections and risk assessments that entail higher costs for lenders
  • Challenging to sell due to complications associated with non-standard construction


For listed building mortgages, repairs typically require the use of original materials, which can be more expensive and present an additional risk to lenders.


Can a Non-Standard House Be Converted to Standard Construction?

Converting a non-standard construction property into a standard one is possible, but the feasibility depends on the specific issues involved. For properties with steel or timber frames, complete rebuilding may be necessary. Replacing the roof or reconstructing walls is a viable option but can be expensive, potentially outweighing any benefits gained from qualifying for a standard mortgage. In cases where a property is unmortgageable, using a bridging loan to secure the purchase, complete renovations, and subsequently refinance with a standard mortgage may be a solution.


Difficulty of Getting Mortgages on New Builds

New build properties, classified as non-standard construction, can pose challenges for obtaining mortgages. For instance, pre-fabricated homes, constructed off-site and often made of concrete, are efficient in terms of production but can incur substantial expenses for repairs or replacement due to their construction method. These factors make them more expensive to insure and riskier for lenders.


Challenges with Concrete Houses

Concrete homes, particularly pre-fab structures assembled on-site, can be challenging to insure and may pose difficulties in securing a mortgage from traditional lenders. However, specialist lenders or mortgage brokers with expertise in non-standard construction properties can still offer lending options for such properties.


How to Get a Non-Standard Construction Mortgage?

Similar to standard mortgages, lenders offering non-standard construction mortgages will assess your personal circumstances, financial situation, and potentially your experience with property development if renovation work is required. Seeking advice from specialist mortgage advisers, like FinSpace, streamlines the process and provides access to the best available deals.


These advisers have expertise in the non-standard construction mortgage market, allowing them to identify the most suitable lenders for each situation and compare rates and terms. With their guidance, applicants can be well-prepared and obtain pre-approval before making an offer on a property, reducing hassle and ensuring access to favourable lending options.



Navigating the world of non-standard construction mortgages requires expertise and access to the right lenders. This is where FinSpace can be your trusted partner. Our team of mortgage advisers specializes in finding tailored solutions for unique property situations, including non-standard constructions. Property Finance Compare is your partner in securing a non-standard construction mortgage. With our expertise and industry connections, we make the complex process simpler and more accessible, helping you achieve your property ownership goals, even in the world of unique and unconventional constructions.

How to Finance an Auction Property: Your Guide to Securing Funds

An exciting way to score a fantastic deal is by buying a house at auction. But because of how swiftly they move, auctions frequently necessitate speedy financing from purchasers. An auction finance broker might be extremely helpful in this situation. This thorough guide will go through how to successfully finance an auction property with the help of an auction finance broker.


Understanding Auction Financing:

Auction financing is a specialised type of funding created to satisfy the particular needs of purchasing properties at auctions. Auction finance, in contrast to conventional mortgages, provides quick approval and flexible conditions, enabling buyers to get funds quickly and with confidence. An auction finance broker specialises in putting purchasers in touch with lenders who offer specific auction purchase financing options.


How does auction property work?

Auction properties work through a bidding process where potential buyers compete to secure the property by offering higher bids. Here’s how it typically works:


  • Pre-auction: The auction house or auctioneer advertises the upcoming auction and provides a catalog of properties available for bidding. This includes essential information about each property, such as its description, photographs, guide price, and any special conditions.
  • Property viewings: Prospective buyers have the opportunity to view the properties before the auction. Open house viewings or scheduled appointments may be organized for interested parties to assess the condition and value of the properties.
  • Legal pack: The auctioneer’s website usually offers a “Legal Pack” for each property. This pack contains legal documents, searches, and other relevant information about the property’s legal status, potential restrictions, and any associated costs. Buyers are encouraged to review these documents thoroughly before bidding.
  • Guide price: The auction house provides a guide price for each property, indicating the approximate range within which they expect the property to sell. It is important to note that the final sale price may be higher or lower than the guide price, depending on the bidding activity.
  • Auction registration: To participate in the auction, buyers must register in advance. This typically involves providing personal details and proof of identity, as well as paying a refundable deposit or providing financial guarantees.
  • Bidding process: The auction takes place on a specific date and time. Bidders can attend in person or participate remotely through online platforms. The auctioneer starts by announcing the property being auctioned and the guide price. Bidders then raise their paddles, make their bids verbally, or place bids online.
  • Auctioneer’s discretion: The auctioneer has the authority to set the bidding increments and control the pace of the auction. They may accept or reject bids based on their judgment. When the bidding slows down and no further bids are made, the auctioneer may announce that the property is “going once, going twice, sold” and the gavel falls, indicating the property has been sold to the highest bidder.
  • Winning bidder: If you are the highest bidder and the property is sold to you, you become the buyer. The auctioneer will request immediate payment of a deposit, typically around 10% of the purchase price. You will usually have a fixed timeframe, such as 4 to 6 weeks, to complete the remaining payment.
  • Unsold properties: If a property fails to meet its reserve price (the minimum price set by the seller), it may be “unsold” at the auction. In such cases, the auctioneer may negotiate with the highest bidder after the auction or relist the property in future auctions.


How to Finance an Auction Property?

Buying a property at auction can be competitive, and there’s no guarantee of success. Here’s how you can finance an auction property:


Hiring an Auction Finance Broker:

It is advised to use the services of a qualified auction finance broker to efficiently navigate the auction financing procedure. These experts have a broad network of lenders and in-depth knowledge of the auction market. They can evaluate your financial status, find suitable lenders, advocate on your behalf during negotiations, and assist you with the application procedure.


Loan Options and Terms:

The numerous loan alternatives and conditions that are available will be explained to you by an auction finance broker. They will present you with a number of loan proposals from various lenders, each of which will include details on the charges, payback conditions, and interest rates. With their knowledge, brokers can help you compare loans and choose the one that best meets your financial goals.


Examining Your Financial status:

It is crucial to assess your financial status before speaking with an auction finance broker. This entails figuring out your budget, credit score, and the highest loan amount you can reasonably afford. You can work closely with your broker to locate appropriate financing solutions if you have a clear idea of your financial capabilities.


Getting the Required Documentation Ready:

Compile the necessary paperwork in advance to hasten the funding procedure. Typical paperwork includes identification proof, proof of income, bank statements, and information about the property you want to buy. Your auction finance broker will advise you on the particular paperwork that lenders require and make sure you’re ready to submit a thorough application.


Researching Lenders:

An auction finance broker is well-versed in the range of lenders available in the industry. They will use their knowledge to find lenders with a track record of offering reasonable rates and advantageous conditions and who have a focus on auction financing. You can access a larger pool of lenders by working with a broker, which improves your chances of finding advantageous financing choices.


Pre-Approval Process:

When it comes to the pre-approval process, working with an auction finance broker can make all the difference. These professionals excel at streamlining the procedure, ensuring that it is efficient and hassle-free. They will work with you to complete the relevant paperwork, gather the necessary evidence, and submit it to lenders on your behalf. Brokers can speed up the approval process by using their contacts and industry expertise to ensure that you get responses from potential lenders on time.


Negotiating with Lenders:

You have access to a seasoned negotiator when you work with an auction financing broker, who can get the finest conditions for your loan. With the help of their connections in the business, specialised lending alternatives, and negotiation abilities, they may act as your advocates and secure reduced interest rates, more palatable repayment options, and significant time and money savings. Brokers also assist you with the application and settlement procedures, providing a seamless conclusion for your financing of auction properties. You put yourself in a successful and cost-effective position to buy a property at auction by working with an auction finance broker.


Application and Settlement:

Your auction finance broker will assist you in completing the application and handle all correspondence with the lender once you have selected an eligible loan option. They will make certain that the necessary paperwork is correctly filled out and submitted, expediting the procedure and reducing the likelihood of delays or problems. Brokers assist in a seamless closing procedure for your auction property finance thanks to their attention to detail and industry expertise.


Post-Settlement Support:

An auction finance broker keeps offering assistance and direction even after the loan has been settled. They can offer advice on refinancing possibilities, market information, and assistance in your search for additional financial options to strengthen your investment strategy. Their continued assistance guarantees that you will have a reliable guide by your side as you pursue property ownership.



A complex procedure, financing an auction property can be made much more manageable with the help of an auction finance broker. By using a broker’s services, you can take advantage of their specialised expertise, connections in the business, and negotiating abilities to get the money you need to buy an auction property.

How To Get 100 Percent JV Property Development Funding

When it comes to the realm of property development, funding stands as the cornerstone of turning ambitious visions into concrete realities. However, the task of securing the necessary financial backing can often be daunting, leading many developers to explore innovative avenues. In this comprehensive guide, we dive deep into the dynamic world of joint venture property development finance, unveiling the secrets to obtaining a remarkable 100% funding through strategic collaborations. 


Property development isn’t just about bricks and mortar; it’s a symphony that demands a diverse range of skills and resources. Joint ventures (JVs) bring together complementary talents, expertise, and resources, multiplying the potential for success. Imagine the union of your visionary concepts with the financial prowess of an investor; this is where the magic begins.


Finding Your JV Partner in PropertyFinanceCompare

In the digital age, platforms like Property Finance Compare have transformed the landscape of property development funding. With a vast network of investors and developers, we act as a bridge connecting dreams with dollars. The key is to craft a compelling project proposal that speaks to the heart of potential JV partners, highlighting not only the financial prospects but also the shared vision that ignites a spark of partnership.


Crafting a Magnetic JV Property Development Proposal

Your proposal isn’t just a document; it’s the story of your project. Engage your potential JV partner’s imagination by weaving a narrative that vividly paints the picture of the project’s journey. From the initial concept to the final outcome, each element should be a brushstroke in the masterpiece you’re creating.


Financial Viability: The Heartbeat of Your Proposal

Your financial projections need to be meticulous, showcasing not just profitability but the clear path to it. Lay out the timeline, costs, revenue streams, and potential challenges, demonstrating your understanding of the project’s financial landscape.


Risk Mitigation and Exit Strategies

Partnerships thrive on trust, and trust thrives on transparency. Address potential risks head-on and present well-thought-out exit strategies. This not only demonstrates your preparedness but also reassures your JV partner that you have considered every scenario.


Setting the Stage for Win-Win Negotiation and Agreement

Both parties should emerge from the process feeling that they’ve gained something valuable. In this intricate choreography, be clear about your funding requirements and your partner’s expectations. Define the roles, responsibilities, and decision-making processes, ensuring a harmonious partnership.


100% JV Property Development Funding

Yes, it’s possible – 100% JV property development funding is not a myth. It’s a strategic alignment of interests, a shared passion for success, and a symbiotic relationship that ensures both parties reap the rewards. Dive into the intricacies of structuring such deals, where your partner’s financial backing covers the entire project, and your expertise fuels its execution.


Navigating Execution Process with Communication and Facing Challenges

The success of your joint venture hinges on effective communication. Regular updates, transparent discussions, and collective decision-making keep the project on track. Embrace tools and technologies that facilitate seamless interaction, creating an environment where collaboration knows no boundaries.


Challenges are the stepping stones to growth. In the dynamic world of property development, hurdles are inevitable. What sets apart successful JVs is their ability to confront challenges together, leveraging their collective wisdom and resources. From unforeseen budget fluctuations to regulatory roadblocks, face them as a united front.


Celebrating the Rewards of Partnership

The Final Product

The moment of truth arrives when your development project stands proudly, a testament to the synergy between your vision and your JV partner’s investment. The grand unveiling isn’t just about the physical structure; it’s about unveiling a shared success story that’s been written through dedication, collaboration, and innovation.


Sharing the Rewards

Your success deserves to be celebrated and rewarded equitably. Honor your JV agreement by sharing the profits as outlined, acknowledging the role each party played in bringing the project to fruition. This not only strengthens the current partnership but sets the stage for potential future collaborations.


Conclusion – Your Journey with PropertyFinanceCompare Begins Today

In the world of property development, the path to success is never solitary. Through the strategic magic of joint venture property development finance, you have the opportunity to transform your dreams into reality while forging partnerships that stand the test of time. As you step into the realm of Property Finance Compare, remember that 100% JV property development funding isn’t just a financial feat; it’s a testament to the power of collaboration, innovation, and the unwavering pursuit of excellence.