It is the first loan that has been completed since the online mortgage lender launched its auction finance proposition in December last year after a significant proportion of the deals that brokers brought to LendInvest were for purchases agreed at auction.

LendInvest’s first auction loan came about after a borrower, who had successfully bid for a property at auction in December, was required to complete the purchase by the last week of January.

The borrower had applied for a loan with another lender, but with a week to go that lender changed its mind to lend to the borrower due to a valuation discrepancy that it believed would not be resolved before the 28-day deadline expired.

•   A guide to auction finance in 2017
•   LendInvest launches auction finance product
•   £70m of commercial property sold at auction

With just a week to complete the loan application, the borrower approached LendInvest and moved quickly from initial enquiry to credit approval with completion achieved in five business days.

LendInvest’s loan is based on 75% gross LTV and lasts for nine months with an interest rate of 0.94% per month.

The borrower also received LendInvest’s fast-tracked service as well as a 50% discount on their valuation fee.

Matthew Tooth, chief commercial officer at LendInvest, felt speed and certainty of funding were the main requirements for borrowers who bought at auction.

“Problems like the one our borrower experienced aren’t unusual, particularly when buying dilapidated or uninhabited properties at auction, but they shouldn’t be insurmountable.

“This is where lenders like LendInvest can distinguish themselves from mainstream counterparts by taking a fast but practical approach to getting loans agreed to quality borrowers within tight timeframes whatever the challenges.”