Bridging finance to buy at auction
Auction completion is non-negotiable, usually 28 days from the fall of the hammer. Bridging finance is built to hit that deadline.
Bridging for an auction purchase
At auction the contract is exchanged the moment the hammer falls. You pay a deposit, usually 10%, on the day, and you have a fixed window, typically 28 days, to complete and pay the balance. Miss it and you forfeit the deposit and can be pursued for the shortfall. A mainstream mortgage rarely moves that fast. Bridging finance does, which is why it is the standard tool for auction purchases.
We arrange the bridge against the property you have bought, sized so the net loan covers the balance owed at completion. Because the average bridge completes in around 55 days but the faster cases run inside two to three weeks, the practical work is front-loaded: we line up the lender, the valuer and the solicitor before or immediately after the auction so the 28-day clock is never the binding constraint.
Auction stock is often the kind of property a high-street lender will not touch, short leases, no working kitchen or bathroom, non-standard construction or repossessions sold for a quick exit. Bridging does not require the property to be immediately habitable or mortgageable, which is exactly why it suits the lots that go under the hammer.
What we fund
- Residential or commercial lots bought at a property auction
- Repossessions and probate sales with a fixed completion date
- Below-market-value lots where speed of completion secured the price
- Properties that need work before a mortgage lender will consider them
- Buying multiple lots in a single auction cycle
Indicative terms
- Deposit on the dayusually 10% of the hammer price
- Completion windowtypically 28 days from exchange
- Indicative ratefrom around 0.88% per month (Bridging Trends, 2025 average)
- Typical LTVaround 60% on average against value or purchase price (indicative)
- Interestusually retained or rolled up; no monthly payments
- Termcommonly up to 12 months while you refurbish, sell or refinance
Indicative only. Terms vary by lender, security and borrower and are not an offer of finance.
How the finance works
We arrange the bridge against the lot you have won and size the gross facility so that, after retained interest and fees are deducted, the net loan settles the completion balance. Lenders typically work to the lower of the purchase price and the open market valuation, so a genuine below-market buy may need you to put in slightly more, while a clean purchase at value can sit near the average 60% loan-to-value mark. We get a Decision in Principle and instruct the valuation as early as possible, ideally before you bid on a serious lot, so the 28 days are spent on legals rather than underwriting. Interest is normally retained or rolled up, so there is no monthly payment to service during the term.
Which lenders back it
Auction finance is a specialism. The lenders we use here run dedicated auction desks geared to the 28-day deadline, with surveyors who turn valuations around quickly and underwriters who are comfortable with non-standard and unmortgageable stock. We hold the relationships that let us get a case in front of a decision-maker fast, which is the difference between an indicative quote and funds in the solicitor's account in time. We are an introducer, not a lender, so we place each lot with the desk most likely to complete on your timetable.
The exit
There are two standard exits and we agree which one before you bid. The first is sale: you refurbish the lot and sell it at the local market price, repaying the bridge from the proceeds. The second is refinance: you let or move into the property and remortgage onto a buy-to-let or term mortgage, using the new mortgage to redeem the bridge. We evidence the chosen exit up front, the comparable resale values for a sale, or an indicative buy-to-let mortgage and an achievable rent for a refinance, because the lender underwrites the exit as closely as the purchase. The term is set with enough room that the works and the sale or remortgage can complete without pressure.
Finance that suits this
- Auction financePurpose-built to fund the completion balance inside the 28-day auction deadline.
- Bridging financeThe underlying short-term facility, useful where the lot also needs refurbishment funding.
Discuss an auction purchase
A view on fundability within one working day.
Frequently asked questions
How does auction finance work?
You pay around 10% on the hammer and have a fixed window, usually 28 days, to complete. We arrange a bridge against the lot, sized so the net loan settles the balance, and aim to have the lender, valuer and solicitor lined up so completion lands inside the deadline.
Can I get finance for an auction property that needs work?
Yes. Bridging does not require the property to be habitable or mortgageable, which is why it suits auction lots. If significant works are needed we can structure refurbishment funding alongside the purchase bridge.
How much deposit do I need?
Usually 10% of the hammer price on the day of the auction. Beyond that, the loan typically covers up to around 60% loan-to-value, so you contribute the remaining purchase cost plus fees. The figures are indicative, not an offer.
Can the finance really complete in 28 days?
Yes, when the groundwork is done early. The market average is around 55 days, but auction desks routinely complete inside two to three weeks when the valuation and legals are instructed promptly. We aim to have a Decision in Principle before you bid.
Who uses auction finance?
Investors, developers and landlords buying below-market, non-standard or repossession stock, and anyone who needs to meet a fixed auction completion date that a mainstream mortgage cannot.
What is my exit?
Either sale of the property at local market price after any works, or refinance onto a buy-to-let or term mortgage. We agree and evidence the exit before you bid.
What does it cost?
An arrangement fee, valuation, legal costs and interest at an indicative rate from around 0.88% per month on the 2025 average. Interest is usually retained or rolled up, so there is no monthly payment during the term.
Planning an auction purchase?
Tell us about the property and the exit and we will come back with a view on fundability and likely terms.