Auction Bridging Loans
Fast Auction Finance at Market-Leading Rates
Fast Finance for Auction Buyers
An auction bridging loan is short-term finance that allows you to complete your auction purchase quickly, even if the property is unmortgageable in its current state.
It’s designed to:
Provide funds in 7–14 days to meet the auction deadline
Cover properties not eligible for standard mortgages (derelict, uninhabitable, or without kitchens/bathrooms)
Act as a cash buyer solution while you arrange long-term finance or refurbishment
Why Auction Buyers Need Bridging Loans
1. Fast Completion
Auction rules require completion within 28 days (sometimes 14). Bridging ensures you have funds ready.
2. Mortgage Restrictions
Many auction properties are unmortgageable due to condition, title issues, or being part-commercial. Bridging lenders are flexible where high street lenders aren’t.
3. Refurbishment Potential
Auction buyers often target properties needing work. Bridging loans fund the purchase and works, with an exit onto buy-to-let or sale.
4. Competitive Advantage
With bridging finance approved in advance, you can bid with confidence and act like a cash buyer.
How Auction Bridging Loans Work
Pre-approval before the auction – Aura Capital arranges a decision in principle so you know your budget.
Winning the bid – pay the 10% deposit on the day.
Bridging loan drawdown – funds released in as little as 7–14 days.
Exit strategy – refinance onto a buy-to-let/commercial mortgage or sell the property once works are complete.
Typical Auction Bridging Loan Terms
Loan sizes: £50,000 – £25m+
Rates from: 0.49% per month
LTVs: up to 75% (higher with additional security)
Terms: 3–24 months
Funding speed: as little as 7 days
With Aura Capital, you access market-leading auction finance rates not always available direct.
Example Scenario
A buyer wins a £180,000 property at auction needing refurbishment.
Traditional lenders won’t lend due to no working kitchen or bathroom.
Aura Capital secures an auction bridging loan within 10 days, releasing £135,000.
The buyer completes on time, refurbishes the property, and refinances onto a buy-to-let mortgage.
Benefits of Auction Bridging Finance
Speed – funding in 7–14 days to hit the auction deadline
Market-leading rates – broker-only deals through Aura Capital
Flexibility – covers unmortgageable and complex properties
Certainty – pre-approval gives you confidence to bid higher
Tailored exits – refinance or sale structured around your goals
Risks & Considerations
Valuation risk – bridging lenders may lend less if the property down-values
Exit certainty – you must have a clear refinance or sale plan
Short-term cost – bridging is more expensive than a traditional mortgage, but designed for speed
Frequently asked questions
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Yes — Aura Capital can arrange an agreement in principle so you bid with confidence.
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That’s where bridging works best. Once works are complete, you can refinance onto long-term finance.
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Not always. Many lenders accept first-time buyers/investors if the exit plan is viable.
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Not always. Many auction bridging loans are based on the hammer price.
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Usually via sale, refinance, or moving to a development finance facility.
