Auction Bridging Loans
Get access to fast and flexible funding to settle your auction purchases within 28-30 days. Our auction bridging loans, range from £100k-£100m, and are the best way for you to acquire properties under the hammer fast.
What is auction bridging finance?
Auction bridging finance is a loan that bridges the gap for the buyer to make a purchase at auction and within the standard 28 days after the fall of the hammer. Mortgages are too slow and once the hammer drops a swift transaction must be made to conclude the auction.
Ideal for:
- Residential, commercial, mixed‑use, or land plots
- Below‑market‑value or unmortgageable
- Picking up properties before bank repossess
- Property in need of refurbishment prior to refinance or sale
How auction purchases work
When you win a bid at property auctions, you need to be able to demonstrate:
- Ability to pay a 10% deposit (or reservation fee) immediately
- Having the means to clear the the remaining balance within 28 or 30 days
Since the contract is legally binding at the drop of a hammer, there’s going to be very little time to get funds in place. An auction bridging loan ensures that you can successfully purchase at auction without defaulting on your deposit and being sued by the auctioneer.
Eligibility at a quick glance
There are 4 key issues your lender will consider when evaluating applications for auction finance:
- Deposit: Lenders will normally want 10-25%.
- Credit Profile: Good credit secures better rates, adverse is not always disqualifying however rates may be less favourable.
- Experience: A first time buyer is acceptable; however experience can strengthen your case.
- Exit Strategy: Most commonly in a refinance or through a sale.
For complete lender criteria see our criteria page.
What does it cost to obtain auction finance?
The following are typical charges relating to auction bridging finance:
- Valuation fee – Around 400-600 for up to 500k property.
- Lender legal fees – 1000 or thereabouts ( varies with type of property).
- Your legal fees – payable by yourself.
- Interest rate – Typically 0.5%-0.75% p.m. (rolled-up or retained).
- Arrangement fee – Typically 2% of the sum required.
- Exit fee – some lenders charge this.
Getting 100% auction finance
Yes, if the property is secured with additional support (e.g. through a second property). Standard lending generally only goes up to 75% LTV.
Pre‑auction preparation
It is advised to identify your desired property a few weeks prior to the auction. This way the lender can draw up an indicative offer for your finances to be processed instantly should you be successful with your bid.
If your offer is successful please notify us immediately and we will initiate the application process promptly without delay.
Should you fail to complete
If you don’t complete on your purchase after winning an auction you could find yourself liable to:
Forfeiture of your 10% deposit or booking fee
Payment of the legal fees for the seller
Potentially liable for damages as claimed by the seller such as resale difference or reduction in value of the property
Auction Bridging finance takes care of this by providing you with sufficient funds to cover any scenario.
Using an auction finance broker
Working with a specialist broker ensures you secure the right lender quickly which is most essential when the clock starts ticking.
Why are we the exception?
- Access to more lenders than anyone in the UK
- Rapid decisions, some can even be approved in 24 hours.
- Offers for low deposit, bad credit, or first-time bidders
- Preauction quotes for security and viability.
- 20 years+ experience arranging finance for winning auctions.