by Kate | Oct 31, 2025
Whether you’re considering buying your first buy-to-let, expanding your property portfolio, or embarking on a property development, the right finance is crucial to making your investment a success.
However, property investment finance isn’t a one-size-fits-all solution. The right type of funding will depend on your circumstances, the kind of property, and your long-term strategy.
Commercial mortgage
If your investment property is commercial, such as an office, retail unit, warehouse, or mixed-use building, a commercial mortgage might be the appropriate choice. A commercial mortgage is similar to a residential one but is designed for commercial assets.
Pros
- Long-term finance solution for commercial investments
- Ability to borrow significant sums
- Can support owner-occupied or investment properties
Cons
- Longer and more complex application process
- Larger deposits and stricter eligibility checks than for residential mortgages
- Valuation of commercial property can be more complex
Commercial mortgages are a good choice if you want to hold a property as a long-term investment or run your business from the premises.
Bridging loan
If you’re seeking quick, short-term funding for your property investment, a bridging loan is an option. A bridging loan can “bridge” the gap while you arrange longer-term finance or sell another asset. This type of finance is particularly beneficial when purchasing property at auction, and completion deadlines are tight.
Pros
- Fast access to funds
- Useful for auction purchases or short-term opportunities
- Can be repaid once long-term finance is secured
Cons
- Higher interest rates compared to other types of finance
- Short repayment terms
- Require a clear exit strategy to prevent costs from escalating
Bridging loans work well when speed is essential and there’s a clear plan for repayment, such as refinancing or selling the property.
Development finance
If your investment involves building, refurbishing, or converting property, development finance could be the most suitable option. This type of funding is designed to provide staged drawdowns as the project progresses, and can be used for land acquisition and construction costs.
Pros
- Tailored for construction and development projects
- Funds released in stages to align with project needs
- Can cover both land purchase and building costs
Cons
- Requires detailed planning and projections
- Lenders often require evidence of property development experience
- More complex to arrange than standard loans
Development finance is a specialised product that can unlock opportunities for both experienced property developers and first-timers.
Buy-to-let mortgage
If you’re considering buying a residential property to rent out, a buy-to-let mortgage is one of the most common types of finance. These mortgages are designed specifically for landlords and are based on the rental income potential of the property, rather than on your personal income.
Pros
- Tailored for rental properties
- Lenders assess affordability based on rental yield
- Long-term financing option
Cons
- Larger deposit usually required (often 25% or more)
- Higher interest rates than standard residential mortgages
- Strict criteria depending on experience and credit history
Buy-to-let mortgages are best suited for investors looking to generate steady rental income over the long term.
Unsecured business loans
In some cases, an unsecured loan can help cover costs related to investment properties, particularly for smaller expenses such as refurbishments, deposits, or professional fees.
Pros
- No collateral required
- Quick application and approval process
- Flexible use of funds
Cons
- Smaller borrowing amounts
- Higher interest rates than secured loans
- Shorter repayment terms
While not suitable for purchasing property outright, unsecured loans can be used to supplement other finance options such as raising a deposit.
Using your pension
It’s possible to invest in commercial property through a Self-Invested Personal Pension (SIPP) or Small Self-Administered Scheme (SSAS). This is a specialist area that requires financial guidance. However, it can be a tax-efficient way to invest in property, particularly if you use your pension to purchase your trading premises.
Pros
- Tax advantages
- Boosts retirement savings
- Diversifies your pension portfolio
Cons
- Strict rules apply, requiring professional guidance and administration
- Can be costly to set up and manage
- Funds tied up in a property aren’t easily accessible
Using your pension to invest in property offers a unique combination of tax benefits and long-term growth opportunities, but it comes with complexity, costs, and risks.
What to consider when choosing property investment finance
Before deciding which type of finance to pursue, think about:
- Type of property – residential, commercial, mixed-use, or development, as this will determine the available options.
- Timescale – do you need funding quickly, or are you looking for a longer-term solution?
- Your experience – lenders often look at whether you’re a first-time investor or an experienced landlord/developer.
- Affordability – lenders will scrutinise rental yields, projected sales, or business income.
- Exit strategy – particularly important for short-term finance such as bridging or development loans.
How ASC can help
We’ve been helping clients finance property investments for over 50 years. Whether you’re buying your first investment property or adding to an established portfolio, we know the lenders who can help.
We work with a broad selection of lenders, including those not available on the high street, and we clearly present your case to increase your chances of securing the right deal. Our role is to simplify the complexity, save you time, and find finance that aligns with your investment goals.
If you’re considering your next property investment, we can help you explore your options and secure funding tailored to your needs. Contact us today.
by Kate | Oct 31, 2025
Buying a property at auction can be a great way to secure a good deal. However, it’s a fast-moving process, and you need to have the necessary finances in place quickly to complete your purchase. That’s where auction finance comes in.
In this blog, we’ll explain what auction finance is, how it works, and why it might be the right option for you.
Why property auctions are different
Purchasing property at an auction differs from buying through the open market. When the hammer falls, you enter into a legally binding contract to buy the property. At that moment, you must:
- Pay a deposit, usually 10% of the purchase price.
- Complete the purchase, typically within 28 days (sometimes even less).
This short timeframe can be challenging if you lack the funds to pay for the property outright. Traditional mortgages often take weeks or even months to arrange. Additionally, lenders may be cautious about certain types of properties, such as those requiring significant renovation or lacking a kitchen or bathroom.
Auction finance aims to bridge this gap, providing you with quick access to the funds needed to meet the auction house’s deadlines.
What is auction finance?
Auction finance is a form of bridging loan. It’s a short-term loan that gives you the funds to purchase a property at auction when you don’t have the cash available upfront.
The features of auction finance include:
- Speed – funds can often be arranged within days rather than weeks.
- Short-term nature – loans are typically for 6–12 months, giving you time to refinance or sell the property.
- Flexibility – lenders are typically less concerned about the property’s condition, allowing for the financing of projects that wouldn’t qualify for a standard mortgage.
These features make auction finance a popular choice for investors, developers, and small businesses seeking to start or expand their property portfolios.
How does auction finance work?
The process of securing auction finance usually follows these steps:
- Preparation before the auction
Before bidding, it’s crucial to secure an agreement in principle from a lender or broker. This agreement provides confidence that funding will be available if you win. You should also conduct due diligence on the property, reviewing the legal pack, surveying the property if possible, and determining your maximum bid.
- Winning the bid
Once the hammer falls and you’re the winning bidder, you’ll immediately pay the deposit and sign the contract. At this stage, you commit to completing the purchase within the auction house’s deadline.
- Arranging the finance
With the agreement in principle already in place, the auction finance application is finalised. Lenders will usually require a valuation of the property and some basic information about your exit strategy – how you plan to repay the loan, either through refinancing, sale, or rental income.
- Completion
The funds are released, enabling you to complete on the property within the strict deadline. Without auction finance, this would often be impossible with a standard mortgage.
Exit strategies for auction finance
Because auction finance is short-term, lenders want to know how you intend to repay it. Common exit strategies include:
- Refinancing – switching to a longer-term mortgage after the property is habitable or renovated.
- Sale of the property – selling the property after increasing its value through refurbishment or development
- Business cash flow – utilising profits or other income streams to repay the loan.
Having a clear and realistic exit strategy is critical to securing auction finance.
Benefits of using auction finance
Auction finance offers several advantages:
- Speed of access – essential to meet auction deadlines.
- Flexibility – available on properties that wouldn’t qualify for a mortgage.
- Opportunity – allows buyers to take advantage of auction bargains or properties with potential.
- Leverage – enables investors to use finance rather than tying up all their cash.
For many small businesses and property investors, these benefits outweigh the often higher interest rates compared to traditional mortgages.
Things to consider
While auction finance can be a powerful tool, it’s important to consider:
- Costs – interest rates and fees are typically higher than with a standard mortgage.
- Short-term nature – you’ll need a clear exit plan to repay the loan.
- Risk – if you can’t refinance or sell the property as planned, you could face financial difficulties.
Working with an experienced finance broker can help you navigate these challenges and structure the right solution for your circumstances.
How ASC can help
At ASC, we’ve been assisting small businesses and investors in securing funding for over 50 years. We understand the pressures of time and the complexities involved in auction finance, and we work with a broad network of lenders to find the right solution swiftly.
We focus on keeping the process simple, so you can bid confidently and complete without stress. Whether you’re a first-time auction buyer or an experienced investor, we’ll help you arrange finance tailored to your goals and exit strategy. With the right support, you’ll be ready to seize opportunities and turn them into profitable investments.
by Conrad Robins | Jul 21, 2025
Client: Transport and logistics company
Facility: £400,000 loan
Purpose: To purchase a freehold property
Background: Supporting a growing logistics company
Over the course of six years, our client had built a successful logistics business, now operating a fleet of eight HGVs with an operating licence for 15 vehicles and experiencing year-on-year growth.
The business approached ASC seeking a commercial mortgage for logistics expansion, enabling them to purchase premises close to their existing yard. The purchase price was £715,000, and they required a loan of £400,000 to add to their £315,000 deposit.
The site would allow them to be nearer to their vehicles and reduce the rent they pay on two separate warehouses and an office. They planned to acquire the property in a holding company and rent it back to their trading business, Elevation Logistics Ltd.
Challenges: Securing a commercial mortgage under pressure
The property was advertised with vacant possession. However, during the purchase, it emerged that one of the units was occupied by a protected tenant. The bank wouldn’t lend until the lease issues were resolved, and the transaction subsequently collapsed.
Solution: Fast turnaround on logistics finance
We sourced a lender experienced in commercial mortgages for logistics companies, ensuring the deal completed in under a month. Learn more about how ASC helps businesses secure commercial mortgages quickly and efficiently.
Outcome: Successful purchase and long-term savings
Our client has successfully completed the purchase of their new premises, saving £14,400 per year on the rent for the office and warehouses.
Eleven months later, after the tenant had signed a new lease, we refinanced with the original lender on a longer-term arrangement with significantly lower monthly repayments.
by Conrad Robins | Jul 2, 2025
Our tailored finance solution helped the agency secure the perfect space and confidently step into property ownership.
Client: Nera Marketing
Facility: £135,000 mortgage
Purpose: Purchase of a commercial unit to facilitate business growth
Background – First business premises
Nera Marketing, has built up several years of experience in the digital marketing sector and has recently taken the next step by expanding its operations and establishing a new limited company.
This growth has enabled Nera to offer a full suite of services, including website design, Google Ads management, search engine optimisation (SEO), and a variety of associated marketing solutions, all from a rented commercial unit.
Our client was seeking finance to purchase a commercial unit that would support the business growth and reduce ongoing rental costs.
Challenge – Securing finance
Securing finance proved difficult, as the limited company had only one year of trading history. Most lenders require at least two years of accounts and a proven track record to be confident that the borrowing can be serviced.
Several high-street banks had declined the application, stating that it was too early for finance and that there was no track record to support it.
Solution – Identified a lender open to projection-led funding
With our in-depth knowledge of the lending market, we identified a lender open to projection-led funding. We worked closely with our client to develop a robust business plan, clearly demonstrating how the purchase of the freehold would support business expansion, create new jobs, and generate sufficient cash flow to meet the loan repayments.
Outcome – successfully secured a £135,000 mortgage
We successfully secured a £135,000 mortgage to fund the purchase of the commercial unit. As a result, Nera Marketing now benefits from:
- Ownership of a valuable business asset
- Greater financial stability by eliminating rent payments
- Security of tenure, with no risk of rising rental costs
- The ability to expand operations, thanks to the additional space the new unit provides
“Working with ASC Finance for Business has been absolutely brilliant. From the start, they were fast, responsive, and genuinely listened to exactly what we needed. Even at an early stage — when other lenders had turned us away — ASC offered their expertise and believed in the potential of our business.
“Thanks to their support, we secured funding to purchase our own commercial unit. This has given us the freedom to invest more into our business, expand our operations, take on new staff, and improve the space now that we own it. We couldn’t recommend them highly enough.”
— Nera Marketing Ltd
by Conrad Robins | Aug 20, 2024
Background – Setting the scene and how the development began
Work continues on a four-phase residential apartment development in Cornwall after ASC secured a development exit loan on behalf of our developer client.
In 2017, our client purchased a former bus depot in St Austell with planning permission to convert the site into 24 houses and six flats. Following the purchase, he submitted a new planning application and was granted permission to build 52 apartments in four blocks.
Using his own money and a private loan, the developer completed the construction of the first block of apartments. With the sale proceeds from this first phase he began building the second block in the development.
Screenshot
Challenges – Funding pressures and obstacles that threatened progress
When the second phase was nearing completion, the developer approached ASC to help secure a loan to finance the rest of the build and repay the private loan. He needed to borrow £1.75 million – £1.35 million to repay the private loan, £200,000 to finish the second block, and £200,000 to begin work on the third phase.
We secured an agreement from a lender to provide a £2 million development exit loan (the required amount plus fees and interest). However, a potential issue picked up by the lender during its due diligence threatened to scupper the loan.
Solution – How ASC worked to overcome the issues and secure finance
To keep the transaction on track, we arranged a meeting between the developer, his architect, senior management at the lender – and us. The outcome was that we were able to alleviate concerns by demonstrating to the lender the likelihood of our client obtaining a slight variation in the planning consent, to improve the scheme’s profitability. Following this meeting, the lender agreed to proceed with the facility, subject to a restructuring – releasing the money in stages rather than in a single advance. This has the benefit of less interest cost to the borrower as interest is not charged on undrawn funds. It was a great outcome all round.
Outcome – The results and benefits achieved through ASC’s support
Developer exit finance is available for (near) physically completed development schemes where the developer wishes to “cash out” before sales are completed. In this example, the value of an experienced broker can be measured in the practical approach taken by the lender in making a commercial decision to support the application.
At ASC, we only work with tried and trusted lending partners, so you can rely on us to select the right lender for your circumstances.
