How auction finance works
When the hammer falls, you typically have 28 days to complete. Here is exactly how we get funds to your solicitor in time.
Hammer falls
You win your lot. At this point you have usually paid a 10% deposit and signed an unconditional contract. The clock starts.
Call us immediately
Within hours of winning, speak to one of our advisers. We will assess the property, confirm the loan amount you need, and identify suitable lenders straight away.
Indicative terms issued
We obtain indicative terms from lenders rapidly, typically within 24–48 hours. You will know the rate, LTV, and estimated costs before committing to anything.
Valuation instructed
A lender-approved valuer inspects the property. Desktop or automated valuations can accelerate this for standard properties.
Legals progress
Your solicitor and the lender's solicitor work simultaneously. Having a solicitor briefed and ready before auction day saves vital time.
Funds released
Once legal and valuation requirements are met, the lender draws down and your solicitor completes. Typically within 14–21 days from instruction.
What lenders look at
Auction finance lenders assess risk differently to standard mortgage providers. Here is a summary of typical lending criteria.
| Criterion | Typical Range |
|---|---|
| Loan amount | £50,000 to £25m |
| Maximum LTV | Up to 80% (first charge) |
| Term | 1 to 24 months |
| Interest | From 0.55% per month |
| Credit history | Adverse considered |
| Property types | Residential, commercial, mixed-use, land |
| Exit strategy | Sale, remortgage, or development loan |
| Completion speed | As fast as 3–7 working days |
Quick cost estimate
Enter your auction purchase price and we will estimate your finance cost.
Property types we fund at auction
Auction lots come in all shapes. Our lender relationships cover the full spectrum.
Standard residential property
Houses, flats, and maisonettes in any condition. Lenders will fund properties that are unmortgageable on a standard product due to condition.
Commercial and mixed-use
Commercial units, shops with flats above, offices, and mixed-use properties. We work with specialist commercial bridging lenders who really understand these assets.
Land and development sites
Land with or without planning, agricultural plots, and development opportunities. Exit via a development loan or planning-led sale.
Derelict or uninhabitable
Properties without a kitchen, bathroom, or in severe disrepair that no high-street lender will touch. Specialist bridging lenders understand these assets and price the risk appropriately.
Listed buildings
Grade I and Grade II listed properties present specific challenges. We have lenders who are comfortable with listed buildings and the restrictions they carry.
HMOs and multi-units
Houses in multiple occupation, blocks of flats, and multi-unit freeholds. We can structure lending across multiple titles where required.
Prepare your finance before auction day
The biggest mistake buyers make is not having finance in place before they bid. Here is what to do beforehand.
Line up your finance first
Speak to us before the auction. We can issue you an Agreement in Principle so you know precisely how much you can borrow and at what indicative rate.
Instruct a solicitor beforehand
Have a solicitor briefed and ready. They can review the legal pack before the auction, flag any title issues, and hit the ground running the moment you win.
Factor in all costs
Bid price plus 10% deposit, stamp duty, valuation, legal fees, and arrangement fee all need to be covered. Use our calculator to build a full cost picture before you raise your paddle.
Common questions about auction finance
Not typically. Most bridging lenders require you to contribute at least 20–25% of the purchase price (i.e., lend at a maximum of 75–80% LTV). However, if you own other property with equity, a lender may take a charge over that as additional security and increase the LTV on the auction property itself. Speak to us about cross-charging if you are in this situation.
In straightforward cases with a co-operative vendor and clean title, we have seen completions in as little as three working days. A more typical timeline for auction finance is 10–21 days. Complex properties, unusual titles, or slow-moving solicitors can push this out, which is why briefing your solicitor before auction day is important.
Missing the auction deadline is serious. The vendor can retain your 10% deposit and re-list the property. If the property sells for less at the next auction, you may be liable for the shortfall too. If it looks like you might miss the deadline, contact your solicitor and the vendor's solicitor immediately. Extensions are sometimes negotiable but there is no guarantee.
Yes, this is one of the main advantages. Properties with no kitchen, no bathroom, structural issues, or in severe disrepair are commonly funded with bridging loans. Standard mortgage lenders will not touch them, but specialist bridging lenders will provide finance on the existing value, allowing you to refurbish and then refinance onto a standard product.
Auction finance is bridging finance arranged for an auction purchase. The product is the same, but the transaction has specific characteristics, namely the 28-day completion window and the unconditional contract signed at the fall of the hammer. Lenders and advisers experienced in auction finance understand the urgency and have processes set up to move quickly.
The most common exit routes are: selling the property (after refurbishment or simply on the open market), refinancing onto a standard buy-to-let or residential mortgage once the property meets lender criteria, or refinancing onto a development loan to carry out a larger conversion or new build. You must have a clear and credible exit in place before applying.