4.97 out of 5 based on 2,400+ reviews
4.97 out of 5 based on 2,400+ reviews
Auction finance gives buyers fast, short-term funding to meet the strict deadlines auction houses set, so you can bid with your finance already in place.
Rated 4.97 out of 5 from 2,400+ reviews
Whether you’re a seasoned investor or a first-time auction buyer, having your finance options arranged in advance is crucial for success.
Gain peace of mind and complete confidence in your property auction purchases with expert financial guidance. From bidding to buying, renovating, or selling, our consultants provide tailored support at every stage of your auction journey.
Have a question about auction finance? Talk it through with one of our consultants and ask them directly.
about auction finance
Auction finance is a form of short-term funding specifically designed to facilitate property purchases at auctions. Unlike traditional mortgages, which often take weeks to arrange, auction finance allows buyers to secure funds quickly and meet the strict deadlines imposed by auction houses.
Typically, winning bidders must pay a non-refundable deposit, often 5% of the purchase price, on the day of the auction, with the remaining balance due within 28 days. Arranging finance ahead of time ensures you can confidently bid without risking lost deposits or missed opportunities.
Auction finance can be used for a wide variety of property types, including residential, semi-commercial, commercial, and land. It provides the flexibility to either refinance into a long-term mortgage later or exit via resale, depending on your investment strategy.
Most traditional mortgages are not structured for auction timelines. Standard mortgage applications can take several weeks or even months, making it impossible to complete a purchase within the auction’s 28-day deadline.
Additionally, auction properties may not meet conventional lending criteria, leaving buyers exposed if relying solely on traditional finance. Auction finance, particularly bridging loans, provides a fast, reliable, and flexible alternative that mitigates these risks.
Auction bridging loans are a specialised subset of short-term commercial finance. They are designed to give buyers rapid access to funds, providing peace of mind that a winning bid can be honoured without delay.
Bridging finance allows buyers to purchase at auction and later refinance with a long-term mortgage, resell the property, or fund renovations.
The Financial Conduct Authority does not regulate some aspects of Bridging Loans. Your home or property may be repossessed if you do not keep up repayments on your mortgage
step by step
Successful auction buyers invest time in researching the type of property they want, the auction houses that specialise in these properties, and the market conditions. Understanding potential issues, renovation costs, and future market value is crucial for informed bidding.
Securing finance ahead of the auction is critical. Consulting an auction finance specialist helps you understand your borrowing capacity, additional costs (such as fees and stamp duty), and enables you to obtain an agreement in principle. This sets your maximum bid and ensures the finance is ready if you win.
If you successfully win the auction, a non-refundable deposit (typically 5%) is due immediately. Full payment is usually required within 28 days. Bridging finance is often the most practical solution due to the strict deadlines and fast completion times.
While auction finance covers the immediate purchase, planning your exit strategy is essential. Depending on your goals—whether selling, letting, renovating, or living in the property—you may refinance onto a long-term mortgage or arrange insurance and additional financing to support renovations and future occupancy.
Next steps
01
Your journey starts with a free initial consultation, usually completed on the same day as your enquiry. In just 20 minutes, we’ll get to know you and understand exactly what you need. This is all with no obligation to proceed.
02
We compare 300+ lenders to identify competitive terms for your property needs. We leverage solutions from private banks, specialist lenders, building societies and the high street.
03
We complete the paperwork, submit the application, and chase the underwriters, valuation, and mortgage offer, keeping you updated throughout the whole process.
Most bridging loans are short-term, ranging from 1 to 12 months, and are designed to be repaid via refinance, resale, or sale of another property.
Whatever your situation, our premier mortgage team can advise on suitable solutions. We specialise in complex and bespoke mortgage solutions to help you find competitive terms.
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