Auction Finance UK
Auction finance is a bridging loan arranged specifically to complete an auction purchase inside the 28-day deadline set when the hammer falls. Lenders advance up to 75% of the purchase price or the valuation, whichever is lower, from roughly 0.75% per month on terms of 3 to 18 months, and can fund in 7 to 21 days where the legal pack has been reviewed before you bid. The exit is a sale, a refurbishment and resale, or a refinance onto a buy-to-let or commercial mortgage. Because the 10% deposit is non-refundable, the sequence that matters is: agree terms in principle first, bid second.
Criteria and pricing
What lenders on our panel will typically do on this product today.
- Maximum advance
- Up to 75% of price or valuation, whichever is lower
- Unmodernised / unmortgageable lots
- Funded — no kitchen, no bathroom, short lease all acceptable
- Rate
- From ~0.75% pcm residential; ~0.89-1.25% pcm commercial and mixed use
- Term
- 3-18 months
- Arrangement fee
- Typically 1.5-2%
- Speed to funds
- 7-21 days; 5-7 days achievable on a pre-approved case
- Interest treatment
- Rolled, retained or serviced
- Exit
- Sale, refurbish and sell, or refinance to a term facility
Worked example - unmodernised flat bought at auction
- Hammer price
- £180,000
- Deposit paid on the day (10%)
- £18,000
- Bridge at 70% of price
- £126,000
- Cash needed at completion (incl. fees)
- ≈ £62,000
- Rate at 0.85% pcm, rolled for 8 months
- ≈ £8,900 interest
- Arrangement fee at 2%
- £2,520
- Refinance value after works
- £245,000
Figures are typical UK market ranges as at 2026 and are indicative only - your terms depend on the asset, the income, the exit and the lender we place the case with.
Who this works for — and who it does not
You are likely to qualify if
- A lot identified, or a clear buying brief plus a legal pack you can send for review
- Cash for the 10% deposit, the balance of the equity, SDLT and fees
- A defined exit - sale, or evidence that a term refinance will be available
- UK individual, limited company or SPV; overseas buyers considered with UK security
This is the wrong product if
- Buyers who have already exchanged and have days left - possible, but pricing rises sharply
- Lots with title defects the legal pack does not resolve
- Purchases with no cash contribution at all
- Owner-occupied residential purchases, which need a regulated bridge and a different panel
What actually happens, and when
- Before the auction
Terms in principle
Send us the lot and the legal pack. We confirm what will fund, at what LTV, and issue indicative terms so you bid with certainty.
- Day 0-2
Hammer falls
Deposit paid, contract exchanged. We instruct the valuation the same day and issue the formal offer.
- Day 3-14
Valuation and legals
Valuer inspects, lender's solicitor works from the auction pack, enquiries are answered.
- Day 14-28
Completion
Funds drawn and the purchase completes inside the 28-day window.