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The exterior of a UK property bought at auction
Auction finance

Auction finance for the 28-day completion timeline

I need auction finance structured around the catalogue timing, lot, contribution, works and exit. Vortex compares suitable bridging routes before I decide whether to bid or apply; the provider controls its valuation, underwriting, conditions and approval.

Catalogue-led timingProperty-backed lendingPurchase and works routesBroker, not a lender
My finance request

Compare auction finance for my property

Share the property or site, finance required, purpose, deadline and exit. Vortex will review the case and compare suitable routes before I decide whether to apply.

Get a free auction finance quote

Share the core deal details for a broker review and a category-specific finance comparison.

Your details are used to assess provider fit and respond to this enquiry.

Buying property at auction starts with the contract, not a generic promise about speed. Many auction properties require the buyer to complete the purchase within 28 days, although the legal pack and auction house conditions control the actual timeline. A bridge for an auction purchase is a type of bridging loan: a short-term loan secured on the property purchase. This type of finance may suit someone purchasing property at auction where a standard mortgage does not fit the condition of the lot or the contractual timetable.

We are a broker, not a finance provider. We compare suitable auction funding routes for the lot and intended exit, including specialist finance for property outside mainstream mortgage policy. our fee model is confirmed upfront before any application, disclosed in writing before you commit. The selected provider confirms the amount, auction finance rates, conditions, credit checks and timing after reviewing the property and application.

Key facts

  • Indicative monthly interest from 0.55% to 0.95%; the rate depends on the lot, the LTV and your exit
  • Up to 75% of the price or open-market value, whichever is lower; plan for a 25% deposit
  • Loan size £50,000 to £5m, subject to provider criteria, a value report, legal work and approval
ScenarioIndicative rateLTV
Residential lot0.55–0.85%/mo75%
Commercial lot0.70–0.95%/mo70%
Refurb project0.65–0.95%/mo70%

Cost calculator

Loan amount£500,000
Monthly interest£3,750
Total interest over term£33,750
All rates indicative; the lender confirms the final terms on application based on the borrower, property, LTV and exit.
Explore your route

Compare auction finance by what you need

Auction finance is fast and flexible short-term funding to purchase an auction property, whether you buy a house at auction as an investment or a commercial unit, and whether you are in the room or bidding online. Start with the angle that fits your deal.

The mechanics

How auction finance works, from the fall of the hammer

How does auction finance work? The application process starts ahead of the auction. Share the lot, legal pack, expected price, cash requirement, works and exit so suitable auction bridging loans can be compared against the date in the contract. After a successful bid, the selected provider may require a survey, underwriting documents and legal work. Bridging finance is designed for short contractual timetables, but no intermediary can guarantee approval or completion.

The provider assesses the property, borrower, contribution, credit position and exit strategy. Depending on the facility, interest may be serviced, retained or rolled up, which affects net cash and total repayment at the end of the term. Some lots do not meet mainstream mortgage criteria in their current condition, so short-term property finance may be considered while the planned works and exit are assessed.

Total cost, not the headline

What it really costs to borrow

The headline monthly rate is only part of the picture. A realistic cost of borrowing combines the interest rate, arrangement fee, legal fees and any exit fee over your term.

  • Interest: indicatively 0.55% to 0.95% a month; specialist cases carry higher interest rates.
  • Arrangement fee: usually 1% to 2% of the loan, often added to the advance.
  • Third-party costs: the survey and legals, by property type and value.
  • Exit fee: 0% to 1% with some lenders; many waive it.

Lower LTV almost always means a cheaper rate. A 1% a month loan over three months costs roughly 3% of the loan in interest, the number to weigh against losing the lot. Every figure is confirmed by the lender on application.

Know your lot

Types of properties you can fund at auction

Plenty of lots fail a habitability check: no working kitchen, structural issues, fire damage, a short lease, non-standard construction. A mainstream lender will not touch them. These are the types of properties this funding solution is built for, and often the best auction opportunities.

  • Residential property. Houses and flats to refurbish and let or sell, including ex-local-authority and probate stock.
  • Commercial properties. Shops, offices and industrial units, with an exit onto a commercial mortgage.
  • Mixed-use and investment property. A shop with a flat above, an HMO conversion, or a yield play for property investors.
  • Repossession lots. Below-market opportunities a slow mortgage would lose.

Your exit strategy drives everything: every lender will ask how you intend to repay the loan, so a credible repayment plan is what gets a case approved. Most buyers take longer-term finance once the property is mortgageable, or sell the property after adding value. We stress-test that exit first.

Whole-of-market

Choosing the right lender for your lot

Going direct to one finance provider gives you one set of criteria. Vortex compares suitable auction finance lenders, including providers that may consider property condition or disclosed credit issues outside mainstream policy. A CCJ or default can affect fit, pricing and conditions, so it should be disclosed at the start.

We explain when the selected provider may run a credit search and package the application around the actual lot, borrower, contribution, catalogue date and exit. The provider decides the search type, survey requirements, underwriting outcome and whether it can issue an offer.

Straight answers

Common worries, answered straight

Is auction finance expensive? +
Per month it costs more than a term mortgage, because it is short-term money, but over a short hold it is usually cheaper than the alternative of losing the deposit and the lot. We only recommend it when the maths favours moving fast, and we frame the total cost over your term up front.
What if my exit slips? +
This is the one to plan for. We stress-test your sale or refinance, build in a buffer, and pick lenders whose terms give you room. If the exit looks fragile, we say so before you bid.
I have been turned down before. +
A decline is useful, not a barrier: it tells us which lenders to avoid and which to target. Tell us what happened and we match you to a specialist who already prices for your situation.
Common scenarios

When auction finance fits

Won at auction

Complete inside the window with a buffer.

Pre-auction

Request a free auction finance quote so you know what is realistic before you bid.

Unmortgageable lots

No kitchen, structural issues or a short lease, exactly what bridging is for.

Buy-refurbish-refinance

Buy now, carry out the works, then move onto a term mortgage.

Repossession sale

Move fast on a below-market lot before it slips.

Adverse credit

CCJs, defaults and discharged bankruptcies, with the right specialist.

FAQ

Questions buyers ask before they bid

Can auction finance complete within 28 days? +
It can be structured around short auction timelines, but completion is not guaranteed. The provider, survey, title, legal work and document pack all affect timing. Share the lot details, legal pack and catalogue before bidding so the contract date can be tested against realistic routes.
How much can I borrow to buy a property at auction? +
You can typically borrow up to 75% of the purchase price or open-market value, whichever is lower, so plan for a deposit of at least 25%. Indicative rates run from 0.55% to 0.95% a month. If the lot is unmortgageable in its current state, that is exactly what this finance is designed for.
The property is unmortgageable. Can you still fund it? +
Potentially. Some specialist auction finance providers consider property that is not suitable for a traditional mortgage, subject to its condition, works, the borrower and exit. Where heavy works are eligible, a facility may release part of the works budget in stages. The provider confirms structure and approval.
I have not bought yet, I am just bidding. Can you help? +
Yes. Share the lot, legal pack, intended bid ceiling, contribution, works and exit before the day of the auction. We can compare plausible routes and request an early view where available, but it is not an agreement in principle, an approval or a promise to complete.
Can I get auction finance with bad credit? +
Possibly. Disclosed credit issues can affect which providers will consider the case, as well as pricing and conditions. The property, contribution, exit and wider application still matter. Tell us at the start so we can assess whether a suitable route may be available without presenting acceptance as certain.
When might a finance provider check my credit? +
The provider decides which checks it needs and when. We explain the proposed route and obtain your consent before an application is submitted, so you know when a credit search may take place.

Get a free auction finance quote before you bid

Tell us the lot, price, funding need, catalogue deadline and exit. We compare suitable auction finance routes before you decide whether to apply, and a regulated adviser confirms the position of any regulated case.