Auction finance for the 28-day completion deadline
Bridging built around the moment the hammer falls. An indicative offer in 24 hours, drawdown inside 14 days of instruction, up to 75% LTV through 100+ lenders, so you complete with real headroom before the deadline.
The hammer falls and the clock starts. From that second you have 28 days to complete, or you lose the 10% deposit and the lot, and a standard mortgage cannot move that fast. Auction finance is a type of finance built on a bridging loan: short-term, interest-only and secured on the property you are buying. The lender prices on the property and your exit, not on a slow income assessment, so auction finance is designed to buy property quickly when buying at auction.
We are whole-of-market, not a lender. We shop 100+ lenders on your side of the table, including specialists for unmortgageable property and adverse credit, and place your case with the one most likely to fund it, first time. We run a soft credit check with your consent first, so exploring your finance options never marks your file. There is no fee to get indicative terms, and our fee model is confirmed upfront before any application, disclosed in writing before you commit. All figures are indicative; the lender confirms on application once it sees the property and your file.
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; terms in 24 hours, drawdown inside 14 days of instruction
| Scenario | Indicative rate | LTV |
|---|---|---|
| Residential lot | 0.55–0.85%/mo | 75% |
| Commercial lot | 0.70–0.95%/mo | 70% |
| Refurb project | 0.65–0.95%/mo | 70% |
Cost calculator
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.
Bridging loans
The parent product behind property auction finance, for any fast-completion deal.
Explore ›Refurbishment finance
Fund heavy works in tranches alongside the buy, with a sale or term-mortgage exit.
Explore ›Commercial mortgages
The exit onto a term facility once a commercial lot is mortgageable.
Explore ›Bridging loan calculator
Frame the monthly cost and total over the term before you bid.
Explore ›How auction finance works, from the fall of the hammer
Auction finance work starts before you bid. Ahead of the auction, or attending an auction in the room, you tell us the lot, the price, the loan size and your exit strategy, and we come back with an agreement in principle from the lenders that fit before the auction house brings the lot up. On auction day your bidding ends in a successful bid, and we instruct the surveyor, solicitor and lender from day one against a fixed timeline. Buying property at auction means you complete the purchase within 28 days from the auction date, and this auction bridging finance, a type of bridging loan, lets you secure a property and complete property purchases at speed.
Because the loan is secured on the property purchase, the lender weighs the property and your exit far more than your income, and the interest is rolled up so nothing leaves your pocket until you exit. A traditional mortgage takes weeks to reach offer, and many auction properties are unmortgageable and fail a high-street survey. This short-term loan prices on the asset and the exit, so purchasing property at auction this way secures funding a standard mortgage cannot.
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.
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.
Choosing the right lender for your lot
Going direct to one lender gets you one answer; if your auction purchase sits outside that box, you get a decline. We hold a panel of 100+ auction finance lenders on the open market, including specialist auction finance providers for unmortgageable property and adverse credit. Use auction finance whole-of-market and you compare the whole panel of property finance, not one finance provider’s view of the auction process, so a CCJ or default is workable with the right specialist.
We run a soft credit check with your consent before any lender sees the case, then package the file so the underwriter takes it seriously and funds it first time, helping you secure property in time. A decline after a hard search lands on your record, so getting the right lender first time protects both your window and your file.
Common worries, answered straight
Is auction finance expensive? +
What if my exit slips? +
I have been turned down before. +
When auction finance fits
Complete inside the window with a buffer.
Get indicative terms so you know your ceiling before you bid.
No kitchen, structural issues or a short lease, exactly what bridging is for.
Buy now, carry out the works, then move onto a term mortgage.
Move fast on a below-market lot before it slips.
CCJs, defaults and discharged bankruptcies, with the right specialist.
Questions buyers ask before they bid
Can you really complete within 28 days? +
How much can I borrow to buy a property at auction? +
The property is unmortgageable. Can you still fund it? +
I have not bought yet, I am just bidding. Can you help? +
Can I get auction finance with bad credit? +
Will getting a quote hurt my credit score? +
Get an indicative auction offer in 24 hours, before you bid
Tell us the lot, the price, the loan size and your exit, and we come back within 24 hours with terms from lenders that fit. There is no fee to find out, and a regulated adviser confirms the position of any regulated case on the call.