Auction bridging loans that complete inside 28 days
An auction bridging loan is short-term finance secured on the lot you've won. It pays for the purchase so you can complete before the auction deadline, which is usually 28 days. You repay it by selling the property or refinancing onto a mortgage.
Rates start from 0.61% a month. Clean cases complete in 5 to 10 working days. And you can have terms in hand before you bid.
On this page
- What is auction bridging?
- Bridging vs mortgage vs cash
- How auction bridging works
- Auction bridging rates
- Auction bridging calculator
- How much you can borrow
- How fast it completes
- Costs the loan does not cover
- Before you bid
- The 28-day countdown
- Guide vs reserve price
- Traditional vs modern method
- Legal pack red flags
- Which lots qualify
- Auction bridging with refurbishment
- Who can get one
- Exit strategies
- How to apply
- Auction houses
- Auction bridging case studies
- Market update
- FAQs
- About this page
The short version
- Most auctions give you 28 days to complete. A mortgage takes 6 to 12 weeks, which is why auction buyers bridge.
- Rates start at 0.61% a month on residential lots at up to 50% LTV.
- You can borrow up to 80% on a straightforward residential lot. If you're buying to refurbish, it can go to 90%. Lenders usually work off the lower of the hammer price and the valuation, but if you're buying below market value, some will lend against the true value and fund up to 100% of the purchase price.
- Expect 5 to 10 working days on a clean case. An AVM or desktop valuation is quicker, but costs about 0.10% a month more and caps you at 75%.
- You'll pay the 10% deposit, buyer's premium, stamp duty and your own legal fees yourself. Put them in your budget before you bid.
- Two things protect your deposit more than anything else: a DIP before the sale, and a solicitor who's already read the legal pack.
What is an auction bridging loan?
Auction bridging is short-term secured finance used to complete a UK property auction purchase within the auction's completion deadline, typically 28 days. An auction bridging loan is secured on the lot, underwritten on the property and the exit, and repaid by a sale or a refinance.
Auction bridging, auction bridging finance and auction finance: is there a difference?
No. Auction bridging, auction finance, a bridging loan for an auction property: it's the same loan with different labels. Some lenders package "auction finance" with extras like a decision deadline or a legal pack review. Underneath, the rates and criteria are ordinary bridging. What actually sets your terms is the lot, the LTV and how you'll repay.
Why auction buyers use bridging finance
At a traditional auction, contracts exchange the moment the hammer falls. From then on you're on the clock. Miss the completion deadline and the seller can keep your 10% deposit and sell to someone else.
Mortgage lenders can't move that fast, and plenty of auction lots wouldn't get a mortgage in their current state anyway. Bridging lenders look at what the property's worth and how you'll pay them back. Your income matters far less. That's why most auction purchases are bridged.
If the lot needs work, the purchase and the works can be funded together. See purchase plus works below and our refurbishment bridging loans page.
Auction bridging vs mortgage vs paying cash
For most auction buyers, bridging is the only option that reliably completes inside 28 days on a property in any condition. A mortgage costs less but takes 6 to 12 weeks and needs a mortgageable property. Cash is quickest of all, but ties up your money until you sell or refinance.
| Auction bridging | Mortgage | Paying cash | |
|---|---|---|---|
| Speed | 5–10 working days, from 72 hours on a prepared case | 6–12 weeks | As fast as your solicitor |
| Max LTV | Up to 80%, 90% on refurbishment purchases | Set by the lender, and only on a mortgageable property | Not applicable |
| Property condition | Any, including no kitchen or bathroom | Must be habitable and mortgageable | Any |
| Typical cost | From 0.61% a month, arrangement fee from 1% | Lower, but with its own arrangement, valuation and legal costs | No interest, but your money is tied up |
| Best suited for | 28-day deadlines, unmortgageable lots and refurbishments | Modern method sales with 56 days to complete, on a habitable property | Smaller lots, if you have the funds to hand |
A mortgage only works at auction when you have the time and the property qualifies. That mostly means modern method sales, where you usually get 56 days to complete. At a traditional auction, 28 days isn't enough for most mortgage lenders, and missing the deadline costs you the deposit.
Paying cash avoids finance costs altogether, but it's rarely the cheapest choice overall. Money tied up in one lot can't fund the next one, or the works. Many investors buy with a bridge, refurbish, then refinance onto a buy-to-let mortgage once the property qualifies. That way their own cash goes further.
If you're unsure which suits your lot, a pre-auction DIP shows you the bridging figures in about a minute, with no credit search.
How does an auction bridging loan work?
You get a decision in principle before the auction, pay the 10% deposit when you win, and the lender values the property while your solicitor checks the title. The loan completes the purchase within the deadline, usually in 5 to 10 working days. You then repay it by selling or refinancing, typically within 6 to 12 months.
- Before the sale. You get a Decision in Principle (DIP) on the lot, so you know your maximum loan, rate and cash requirement before you bid.
- On the day. You win, exchange contracts and pay the 10% deposit and the buyer's premium from your own funds.
- Valuation and underwriting. The lender values the property by AVM, desktop or full RICS inspection, and underwrites the case in parallel with your solicitor's work on title.
- Completion. The lender advances a percentage of the lower of the hammer price and the valuation. Fees and, usually, the term's interest are deducted. Your solicitor completes the purchase.
- Exit. Within the term, usually 3 to 24 months and most often 6 to 12, you sell the property (often called flipping) or refinance onto a buy-to-let or commercial mortgage, and repay the loan in full.
Auction bridging loan example: £250,000 residential lot
Say you win a habitable residential lot at £250,000. Your credit's clean, you want the loan for 6 months, and you plan to refinance. Here's how the three routes compare. The figures match what you'd get from our calculator.
| Full RICS, 75% LTV | AVM / desktop, 75% LTV | Highest advance, 80% LTV | |
|---|---|---|---|
| Gross loan | £187,500 | £187,500 | £200,000 |
| Rate | 0.73% pcm | 0.79% pcm | 0.89% pcm |
| Interest, 6 months retained | £8,213 | £8,888 | £10,680 |
| Arrangement fee (2% assumed) | £3,750 | £3,750 | £4,000 |
| Valuation | £850 | £0 | £850 |
| Lender legal fees (0.25%, minimum £750) | £750 | £750 | £750 |
| Admin fee | £395 | £395 | £395 |
| Net advance on completion | £173,543 | £173,718 | £183,325 |
| Total cost of finance | £13,958 | £13,783 | £16,675 |
| Your cash towards the price | £76,458 | £76,283 | £66,675 |
| Typical completion | 10–15 working days | About 5 working days | 10–15 working days |
The cash figure includes the £25,000 deposit paid on the day. Buyer's premium, stamp duty, your own solicitor and insurance sit outside these figures. Unused retained interest is normally refunded if you repay early.
The AVM route works out at roughly the same cost as a full valuation. You pay a slightly higher rate but save the valuation fee, and you complete about a week sooner.
The 80% route is the one to look at if cash is tight. You put in about £9,800 less of your own money, and it costs about £2,700 more over the six months.
If you're buying to refurbish, you can borrow up to 90%. On the same £250,000 lot, that's a £225,000 loan at 0.89%. After fees and 6 months' retained interest you'd receive £206,490, so you'd need £43,510 of your own cash towards the price. See auction bridging with refurbishment.
Run these numbers on your lot
Maximum loan, rate and cash needed in about a minute. No credit search, no fee.
What are auction bridging loan rates in 2026?
Bridging is priced by the month. Our best rate is 0.61% a month (7.32% a year before compounding), for a residential lot at up to 50% LTV.
Where you land above that comes down to how much you borrow against the value, what kind of property it is, how it's valued, your credit, and how convincing your exit is.
Rates by LTV: residential and HMO lots
| LTV band | Rate from (pcm) | Annual equivalent |
|---|---|---|
| Up to 50% | 0.61% | 7.32% |
| 50–65% | 0.69% | 8.28% |
| 65–75% | 0.73% | 8.76% |
| 75–80% (highest net advance) | 0.89% | 10.68% |
| 80–90% (refurbishment cases only) | 0.89% | 10.68% |
Rates and LTV by type of lot
| Lot type | Rate (pcm) | Max LTV | Usual valuation |
|---|---|---|---|
| Residential, habitable | 0.61%–0.89% | 80% | AVM, desktop or RICS |
| Residential, AVM or desktop route | +0.10% | 75% | AVM or desktop, about 5 working days |
| Auction plus refurbishment | 0.61%–0.89% | 90% | RICS |
| Auction plus heavy refurbishment | 0.75%–1.5% | 75% day one | RICS with value after works |
| Commercial / mixed-use | 0.79%–0.89% | 70% | Desktop or RICS |
| Land | 0.99% | 65% | RICS |
| Adverse credit (any lot) | +0.10% | 70% | As above |
Rates as of October 2026. Heavy refurbishment is priced case by case, once the lender has seen the schedule of works. On loans under £100,000, add 0.10% a month, with a floor of 0.82%.
Auction bridging rates by valuation route
The lowest rates come with a full RICS valuation and full underwriting, and both take time. Lenders who'll go on an AVM or desktop valuation are taking more risk, so they charge a little more for the speed.
| Route | Valuation | Completion | Rate | Max LTV |
|---|---|---|---|---|
| Lowest cost | Full RICS (from £850) | 10–15 working days | From 0.61% | 65% |
| Fastest completion | AVM or desktop (£0) | About 5 working days | Lowest-cost rate +0.10% | 75% |
| Highest net advance | Full RICS (from £850) | 10–15 working days | 0.89% | 80%, 90% refurbishment |
Come to us before the auction and a full valuation usually fits comfortably inside 28 days. If you've already won, the extra 0.10% for an AVM or desktop route is normally money well spent.
Fees
| Cost | Typical amount | When it is paid |
|---|---|---|
| Arrangement fee | From 1%, typically 2% | Deducted from the gross loan on completion |
| Broker fee | None upfront | We are paid by the lender on completion, disclosed before you proceed |
| Valuation | £850 RICS, £0 AVM | Commercial and higher-value lots priced to the property |
| Lender legal fees | 0.25% (min £750) | Deducted on completion |
| Admin fee | £395 | Deducted on completion |
| Exit fee | Nil to 1% | On redemption. Many lenders we use charge none |
LTV moves your rate more than anything. Property type comes next, then how well you can evidence the exit. A clean legal pack helps, and so do a few previous purchases under your belt.
What auction bridging rate would your lot get?
We show the cheapest, fastest and highest-advance routes side by side. Seen a lower rate elsewhere? Send it over and we'll try to beat it.
Auction bridging loan calculator
Put in the hammer price, the buyer's premium and any works budget. You'll see what you pay on the day and how much cash you need to complete. The rates are the same ones our main bridging loan calculator uses.
Modelling a refinance, second charge or several properties? Open the full bridging loan calculator
How much can you borrow with an auction bridging loan?
We arrange auction loans from £26,000 to £10 million and above. The loan is a percentage of the property's value. At auction, "value" normally means whichever is lower: the hammer price or the valuer's figure.
Buying below market value is the exception. If you win a £200,000 lot that values at £260,000, some lenders will lend against the true value rather than the hammer price, up to 75% of the value, at 0.82% a month. On a big enough discount, that can cover up to 100% of the purchase price. Otherwise the extra equity is still yours. You just get it out later, when you refinance or sell.
How to borrow more
- Highest-net-advance route: up to 80% LTV on residential lots with clean credit and a full RICS valuation, at 0.89% per month.
- Refurbishment cases: up to 90% LTV where the lot is bought to refurbish and the works are part of the facility. This is the only route to 90%.
- Additional security: a charge over a second property you own can fund up to 100% of the purchase price, provided total borrowing stays within the lender's overall limit, typically 70–75% across both.
- Works in the same facility: on heavier projects, a loan sized on the value after works (GDV) can release more than a flat LTV. See refurbishment bridging loans.
How fast can auction bridging finance complete?
Most auction bridging loans complete in 5 to 10 working days. With a decision in principle in place, an AVM valuation and a solicitor who has already read the legal pack, it can be 72 hours to 5 working days. A full RICS inspection takes 10 to 15 working days. The lending decision is rarely what holds things up.
| Scenario | Time to funds | What makes it possible | What breaks it |
|---|---|---|---|
| DIP already held | 72 hours – 5 working days | AVM valuation, solicitor instructed and legal pack read before the sale, clean title, company already set up | Nothing outstanding: this is the prepared case |
| Standard clean case | 5–10 working days | Desktop valuation, standard residential lot, evidenced exit, solicitor instructed within 48 hours | Waiting a week to instruct a solicitor |
| Full RICS inspection | 10–15 working days | Commercial, non-standard or higher-value lot. Inspection booked the day the lender instructs | Valuer availability. Access to an empty property |
| Legal or credit issues | 15–25 working days | Title defect, short lease, absent freeholder, adverse credit or indemnity policy. A lender chosen for the issue | Finding the problem after the hammer instead of in the legal pack |
Is a 7-day auction bridging loan realistic?
Yes, on a clean residential lot where an AVM returns a usable figure and your solicitor already holds the legal pack. We complete cases in that window regularly. Seven days becomes impossible when a solicitor starts from scratch on day eight or a valuer cannot get access for a fortnight. A pre-auction DIP and a solicitor instructed before the sale avoid both.
What does buying at auction cost on top of the loan?
On top of the loan, you pay the 10% deposit and buyer's premium on auction day, stamp duty within 14 days of completion, your own legal fees, and buildings insurance from exchange. Valuation may also be yours to pay. All of it needs to fit inside your maximum bid, so work it out before the sale.
| Cost | Typical amount | When it is paid | Funded by the loan? |
|---|---|---|---|
| Auction deposit | 10% of hammer price | On the day | No, but it counts towards the price |
| Buyer's premium | 0.5%–3%, or £1,000–£3,000 plus VAT | On the day | No |
| Stamp duty (SDLT) | Plus the additional-property surcharge where it applies | Within 14 days of completion | No |
| Arrangement fee | From 1% of the gross loan, typically 2% | Deducted from the advance | Deducted |
| Broker fee | None upfront | Paid by the lender on completion | Not charged to you |
| Valuation | £0 AVM, £850 RICS, more on commercial | On instruction | No |
| Legal fees, both sides | £1,500–£3,500 residential. More for commercial | On completion | Lender's legals deducted. Yours not |
| Searches, if the pack is incomplete | £250–£450 | Before completion | No |
| Buildings insurance | Unoccupied cover costs more | From exchange | No |
| Bridging interest | Rate × loan × term | Retained, rolled up or monthly | Yes, if retained or rolled up |
| Works plus contingency | Hold back 10%–15% | During the project | Yes, if in the same facility |
At a traditional auction, risk passes to you when the hammer falls, weeks before you get the keys. If the property is damaged in between, the loss is yours. Most auction lots need unoccupied-property cover rather than a standard policy.
How to get your finance ready before you bid
Get a decision in principle on the lot, read the legal pack, instruct a solicitor and budget every cost before the auction. Have your exit evidence ready too. Buyers who do this complete comfortably inside 28 days. Most deadline problems come from leaving these steps until after the hammer falls.
- Get a Decision in Principle. Send us the lot, guide price, your maximum bid and your exit. We confirm the loan, rate and valuation route the same day, so you know your bidding ceiling.
- Read the legal pack. Look for title problems, short leases, missing searches, tenancies and special conditions that shorten the deadline or add fees.
- Instruct a solicitor. Share the legal pack and check they are on your intended lender's panel. This is the single biggest factor in meeting the deadline.
- Budget every cost. Deposit, buyer's premium, stamp duty, finance fees and interest, both sides' legal fees, valuation, insurance and any works plus contingency.
- Evidence your exit. Sold comparables for a sale. A rental estimate and buy-to-let stress test for a refinance.
- On the day, tell us the moment you win. We instruct the lender and book the valuation the same day.
What happens in the 28 days after the hammer falls?
After the hammer falls, the lender is instructed the same day and the valuation follows within 1 to 5 days. A formal offer usually comes by day 5 to 8, and completion by day 10 to 14. That leaves up to two weeks of buffer before a standard 28-day deadline. Here's the timeline we work to, in calendar days.
| Day | What happens | Who owns it |
|---|---|---|
| Before the sale | DIP issued, legal pack reviewed, solicitor instructed, works priced | You and us |
| Day 0 | Hammer falls, contracts exchange, deposit and premium paid, insurance arranged, lender instructed | You |
| Day 1 | Valuation booked on the fastest suitable route. Full application submitted | Us |
| Days 1–5 | Valuation returned: AVM same day, desktop 1–2 days, RICS 3–5 days | Valuer |
| Days 2–6 | Underwriting runs alongside the valuation. Queries cleared as they arrive | Us and lender |
| Days 5–8 | Formal offer issued. Solicitors report on title | Lender and solicitors |
| Days 8–12 | Legal conditions satisfied, funds requested | Solicitors |
| Days 10–14 | Completion: funds released, purchase completes, keys released | Solicitors |
| Days 14–28 | Buffer for requisitions, missing searches, probate or tenancy issues | Everyone |
What saves time
- A solicitor instructed before the sale, typically saving 3 to 5 days
- A panel solicitor acting for both sides
- An AVM or desktop valuation on residential lots
- Exit evidence ready before the underwriter asks
What blows the deadline
- Instructing a solicitor the week after the sale
- A legal pack problem found after the hammer
- Exit evidence requested and not ready
- A 21-day special condition nobody read
Tell us and your solicitor early, not on day 26. Many auction houses grant a short extension where funds are confirmed and completion is imminent, often with daily interest under the contract. They rarely extend for a buyer who went quiet.
What is the difference between guide price and reserve price?
The guide price is a marketing figure. The reserve price is the confidential minimum the seller will accept, and it decides whether the lot sells. Size your finance on your real maximum bid, not the guide.
| Term | What it means | Effect on your finance |
|---|---|---|
| Guide price | Where bidding is expected to open. Often revised upward before sale day | Use it to shortlist lots. Size the loan on your maximum bid |
| Reserve price | The seller's confidential minimum. Under RICS guidance it should not exceed 10% above a single-figure guide | Assume it sits at the top of the guide range |
| Guide range | The reserve sits inside the range | Size your DIP on the upper figure at least |
| Hammer price | What you agreed to pay. Binding when the hammer falls at a traditional auction | The purchase price your loan is calculated on |
| Open market value | The valuer's figure, produced after you win | Lenders use the lower of hammer price and this figure |
| Unsold lots | Bidding did not reach reserve. The lot can often be bought after the sale | The same deadline applies once terms are agreed |
A lot guided at £150,000 can carry a reserve of £165,000 and sell at £190,000. A buyer with a DIP sized on the guide arrives £40,000 short of the room. A DIP costs nothing and carries no obligation to draw down, so size it on your genuine ceiling.
Traditional or modern method auction: what changes for your finance
Traditional (unconditional)
Contracts exchange when the hammer falls. 10% deposit on the day and completion in 20 to 28 days, non-negotiable. Bridging is almost always the right tool.
Bridge arranged before you bidModern method (conditional)
You pay a non-refundable reservation fee, typically £5,000 to £10,000, then usually have 28 days to exchange and 56 to complete. Bridging is still common because the fee is at risk.
Bridge for certaintyClosed bids and off-market
Private sales with auction-style deadlines, often estate or distressed sales. Bids by a set date and completion in 2 to 4 weeks. A DIP makes your bid credible.
Treat as a traditional auctionScottish sales
Missives and standard securities replace exchange and legal charges. The lender panel is narrower and a Scottish solicitor is needed. Clean cases complete on similar timescales.
Scottish solicitor requiredWhich legal pack problems delay auction bridging finance?
Most auction completions that go wrong fail on a legal pack problem found too late. Send us the legal pack before you bid and we will flag anything that affects lender appetite or timing.
Title and rights
Missing rights of way, unclear boundaries or restrictive covenants. Lenders may reduce LTV or wait until resolved. Many issues are insurable if disclosed early.
Short leases
Many lenders will not fund leases under 85 years. Poor service charge history adds to the problem. Price the lease extension into your exit.
Special conditions
Extra buyer's fees, contributions to the seller's costs, or deadlines shorter than 28 days. We have seen 14-day and 10-day conditions on lots advertised as 28-day sales.
Tenancies and occupiers
Unknown occupiers, non-standard tenancies or tenants with grounds to resist possession. Lenders need clarity on who is in the property.
Missing searches
No local authority, drainage or environmental searches. Your solicitor can order them, but add days to the timeline. Some lenders need them before an offer.
Unconsented works
Extensions without planning or building regulations sign-off. Often resolvable with indemnity insurance, if identified before the sale.
Which auction lots can you bridge?
Almost any UK property can be bridged at auction: houses and flats in any condition, HMOs, commercial and mixed-use buildings, and land with or without planning. It doesn't need to be mortgageable today. What lenders need to see is a credible way to repay within the term.
Residential
Houses and flats in any condition, HMOs and freehold blocks, ex-local authority and non-standard construction, structural or title issues, and short leases with specialist lenders.
Commercial and mixed-use
Shops with flats above, offices, industrial units and leisure, with vacant possession or sitting tenants. Up to 70% LTV. See commercial bridging loans.
Land and development
Land with or without planning, permitted development opportunities and part-built schemes. Up to 65% LTV. See land bridging loans.
Unmortgageable property
No working kitchen or bathroom, damp or structural defects. These lots sell below market value because mortgage buyers cannot bid, which is where bridging is most useful.
Auction bridging with refurbishment: up to 90% LTV
Yes. One loan can cover both the purchase and the works, and it's the setup we arrange most often. Most auction lots are cheap for a reason. The usual plan is buy, improve, then refinance or sell, and one facility handles all of it.
This is also the only way to reach 90% LTV. Without works, auction loans stop at 80%. To qualify, the works need to be scoped, costed and built into the facility, and the lender will want a full RICS valuation.
How it works
- Purchase advance released on completion
- Light works funded in one day-one advance, up to 90% LTV
- Heavy works released in stages as each is signed off
- Interest charged only on money drawn under staged release
Why one facility
- One set of legal fees, valuation and arrangement fee
- Works start straight after completion
- The lender underwrites the finished value from the start
- The exit is planned before you bid
Bring your works budget to the pre-auction DIP. Lenders rarely add works funding to an existing loan without refinancing it, so if you only arrange the purchase, you can end up with nothing for the works. For more on light, medium and heavy works, and loans sized on the value after works, see refurbishment bridging loans and light refurbishment bridging.
Who can get auction bridging finance?
Individuals, limited companies, SPVs, LLPs and trusts can all get auction bridging finance, including first-time buyers and people with adverse credit. Lenders look first at the property and how you'll repay. Your income, job and credit history matter far less than they would for a mortgage.
| Area | What lenders accept |
|---|---|
| Borrower | Individuals, limited companies, SPVs, LLPs and trusts. First-time and experienced investors; UK residents and, with specialist lenders, overseas nationals. Age 18 to 85 with most lenders |
| Property | England, Scotland and Wales. Residential, commercial, mixed-use and land. Freehold and leasehold. Unmortgageable and non-standard construction. Minimum value typically £75,000 |
| Exit | Sale with comparable evidence, buy-to-let refinance that passes the stress test, or a clear next finance stage on development |
Auction bridging with bad credit
Satisfied CCJs, defaults, past mortgage arrears and discharged bankruptcy are regularly accepted. Expect about 0.10% a month more and a 70% LTV cap, and you will need stronger evidence for your exit. Disclose everything at the start: a credit problem found late can cost you the deposit. See bad credit bridging loans.
Limited companies and SPVs
Most investors buy at auction through a limited company or SPV. The company can be set up for the purchase and needs no trading history. Directors usually give personal guarantees. See SPV bridging loans.
Buying a home to live in
A bridging loan on a property you or a close family member will live in is usually a regulated mortgage contract. Aura Capital arranges unregulated auction bridging finance for investment purchases only. If your case is regulated, we refer it to an FCA-authorised firm. Regulated bridging loans are usually limited to 12 months.
What exit strategies do auction bridging lenders accept?
Lenders accept two main exits: selling the property, or refinancing onto a buy-to-let or commercial mortgage. Some cases exit through a development or portfolio refinance. Whichever you choose, it needs evidence behind it. A well-evidenced exit is what turns an enquiry into an approval.
Sale
Improve or hold, then sell within the term. Evidence: sold comparables on the same street or postcode, an agent's appraisal, and a timeline that allows for marketing and completion.
Buy-to-let refinance
The most common exit. Evidence: a letting agent's rental estimate, a rent that passes the stress test (typically 125–145% of the mortgage payment) and a mortgageable property after works. Many BTL lenders want 6 months' ownership first.
Development or portfolio refinance
For HMO conversions, planning gains or rolling several lots into one facility. See development exit bridging loans.
What does not count
"I'll sell it or maybe let it." Three sold comparables at £285,000 to £295,000 and an agent's letter confirming four-week sale times in the postcode does.
How to apply for an auction bridging loan
Send us the lot, the guide price, your maximum bid and your exit, ideally before the auction. We'll confirm a decision in principle the same day. Once you win, we instruct the lender and book the valuation, then handle underwriting while your solicitor does the legal work. Clean cases complete in 5 to 10 working days.
Pre-auction enquiry
Send the lot, guide price, maximum bid and exit. We check lender appetite and the fastest valuation route and issue indicative terms, your DIP.
Auction day
Pay the 10% deposit and the buyer's premium. Tell us straight away and we instruct the lender and book the valuation.
Valuation
AVM the same day on standard residential lots up to about £500,000, desktop in 1 to 2 days, or a full RICS inspection in 3 to 5 days. See AVM bridging loans.
Application and underwriting
ID and proof of address, the legal pack, exit evidence, borrowing entity details and your solicitor's details. We manage underwriting queries.
Formal offer and legal work
The lender issues an offer and the solicitors complete their checks. A solicitor instructed before the sale is the biggest single time saver.
Completion
Funds go to your solicitor, the purchase completes and you get the keys. Works money is released on day one or in stages, as agreed.
We work with more than 50 specialist lenders, from challenger banks to private credit funds. That range matters most on complex or adverse cases, where only a handful of lenders will say yes.
Which auction houses do you arrange auction bridging finance for?
We arrange auction bridging loans for lots bought at national and regional auction houses across England, Scotland and Wales, in the room, online and by proxy. Your lot and your exit decide which lender suits, whichever auction house runs the sale. The sale format does change your deadline.
- National residential and mixed catalogues: Allsop, Savills, Barnard Marcus, Bond Wolfe, SDL Property Auctions, Auction House UK, Pugh, Network Auctions and Clive Emson. Most sell on traditional terms with completion in 20 or 28 days.
- Commercial and investment lots: Acuitus, Allsop Commercial and Strettons. Lots are priced on yield, and lenders will want the leases and service charge history.
- Modern method and agent-led sales: conditional sales through iamsold and similar platforms, with a reservation fee, usually 28 days to exchange and 56 to complete.
- Scottish sales: our Hawick portfolio purchase completed under Scottish conveyancing.
Send us the lot number and catalogue before you bid. The deadline that counts is the one in the addendum, which can differ from the catalogue cover.
Auction bridging case studies
A few recent auction and bridging cases we've arranged. Rates are the ones agreed at the time.
Auction bridging with refurbishment, Birmingham
Commercial auction bridging, Manchester
Auction bridging with adverse credit, Leeds
The Leeds case worked because the solicitor was instructed before the auction, documents went in on day one and we chose a lender that specialises in adverse credit.
Auction bridging market update: autumn 2026
What we're seeing on our own cases this autumn.
- Best residential auction pricing is unchanged at 0.61% per month at low LTV with an evidenced exit. Most standard residential lots price between 0.69% and 0.89%.
- Auction plus refurbishment is placing at up to 90% LTV where the works scope is agreed before the bid.
- Solicitor capacity is the main constraint on autumn completions. Cases with a solicitor instructed before the sale are still completing in 5 to 10 working days.
Bidding at an autumn sale? Instruct your solicitor and get your DIP in place before the catalogue closes.
Auction bridging loan FAQs
What is an auction bridging loan?
Short-term finance secured on a property bought at auction, used to complete within the auction deadline, usually 28 days. It is repaid by selling or refinancing the property. Lenders assess the property and your exit rather than your income.
Is auction bridging regulated?
Usually not. If you're buying to let, sell or develop, the loan is unregulated. If you or a close family member will live in the property, it becomes a regulated mortgage contract. We don't arrange those, but we'll refer you to an FCA-authorised firm. Regulated bridging loans are usually limited to 12 months.
How much cash do I need on auction day?
You pay 10% of the hammer price plus the buyer's premium on the day, from your own money. The premium is typically 0.5% to 3%, or a flat £1,000 to £3,000 plus VAT. The 10% counts towards the price. Bridging can't cover it, because the loan isn't released until completion.
What if the valuation comes in below the hammer price?
The lender lends on the lower figure, so your loan shrinks and you cover the gap. Win at £200,000, get a £180,000 valuation, and 75% LTV gives you £135,000 instead of £150,000. That's £15,000 more to find. You can add cash or offer another property as extra security. It's why we sense-check the price before you bid.
Can I pull out after winning at auction?
Not at a traditional auction. Contracts exchange when the hammer falls, so pulling out means losing your 10% deposit, and the seller can claim any further losses. At a modern method auction you lose the reservation fee instead.
How do lenders value an auction property?
One of three ways. An AVM is a computer valuation, returned the same day with no fee, for standard residential lots up to about £500,000. A desktop valuation takes 1 to 2 days. A full RICS inspection takes 3 to 5 days and is needed for commercial, non-standard and higher-value lots.
Can I refinance onto a buy-to-let mortgage straight after completion?
Usually not straight away. Many buy-to-let lenders want you to have owned the property for 6 months first. Set your bridge term to cover that, plus time to arrange the mortgage. Unused retained interest is normally refunded if you repay early.
Is auction bridging finance the same as an auction bridging loan?
Yes. Auction bridging, auction bridging loans, auction bridging finance and auction finance all describe the same short-term loan used to complete an auction purchase. The rate, LTV and speed depend on the lot, your exit and the valuation route, not on the name.
How quickly can an auction bridging loan complete?
Clean cases complete in 5 to 10 working days. An AVM valuation and a solicitor instructed before the sale can bring it to 72 hours to 5 working days. A full RICS inspection takes 10 to 15 working days, and legal or credit complications 15 to 25.
How long is an auction bridging loan?
Usually 3 to 24 months, and most often 6 to 12. You repay it by selling the property or refinancing onto a mortgage. Unused retained interest is normally refunded if you repay early. Regulated bridging loans, on a home you will live in, are usually limited to 12 months.
Is a 7-day auction bridging loan realistic?
Yes, on a clean residential lot where an AVM returns a usable figure and your solicitor already holds the legal pack. The lending decision is rarely the bottleneck. Conveyancing and valuation access are.
Can I get a Decision in Principle before the auction?
Yes, and you should. A DIP confirms your maximum loan, rate and valuation route so you know your bidding ceiling, and starts the process before the hammer falls. It is free, needs no credit search and does not commit you to proceed.
What are auction bridging loan rates in 2026?
From 0.61% per month at up to 50% LTV on residential lots, 0.69% to 65%, 0.73% to 75% and 0.89% to 80%, or to 90% on refurbishment cases. Commercial and mixed-use lots are 0.79% to 0.89%, land 0.99%, and auction plus heavy refurbishment 0.75% to 1.5%. AVM or desktop routes and adverse credit each add 0.10%.
Why do AVM and desktop valuation loans cost more?
No surveyor inspects the property, so the lender takes more risk. These routes price about 0.10% per month above the full-valuation rate and cap LTV at 75%. In return there is no valuation fee and completion takes about 5 working days instead of 10 to 15.
What deposit do I need for an auction bridging loan?
Usually 25% at 75% LTV, or 20% on the highest-net-advance route at 80% LTV. Refurbishment cases can go to 90% LTV, a 10% contribution. The 10% paid on auction day is part of the purchase price, not an extra deposit. Commercial lots need at least 30% and land 35%.
How much can I borrow for an auction purchase?
From £26,000 to £10 million and above. The loan is a percentage of the lower of the hammer price and the valuation: up to 80% on residential lots, and up to 90% only where the lot is bought to refurbish. Additional security can take it to 100% of the price.
If I buy below market value, will the lender lend on the higher valuation?
Often, yes. Most lenders use the lower of the hammer price and the valuation. On a below-market-value purchase, some will lend against the true value instead, up to 75% of the value at 0.82% a month. With a big enough discount, that can cover up to 100% of the purchase price.
Can I get 100% auction finance with no deposit?
Yes, in two ways. On a below-market-value purchase, lending against the true value can cover up to 100% of the price. Or a charge over another property you own can fund up to 100%, as long as total borrowing stays within the lender's limit, typically 70–75% across both. You'll still pay the 10% on the day and get it back at completion.
What costs does an auction bridging loan not cover?
The 10% deposit on the day, the buyer's premium, stamp duty including any surcharge, your own legal and survey costs, and insurance from exchange. Budget these when setting your maximum bid.
What is a buyer's premium and can it go on the loan?
A fee the auction house charges the winning bidder on top of the hammer price, typically 0.5% to 3% or a flat £1,000 to £3,000 plus VAT, payable on the day. It cannot be added to the loan, which is sized on the lower of hammer price and value.
What happens if I miss the completion deadline?
The seller can cancel the contract, keep your 10% deposit and resell, and may claim any shortfall on resale. Have the finance, legal pack review and solicitor in place before you bid.
Can the auction completion deadline be extended?
Sometimes. Many auction houses grant a short extension where funds are confirmed and completion is imminent, often with daily interest under the contract. Tell us and your solicitor as early as possible.
Can I arrange auction finance after the hammer has fallen?
Yes. Many of our cases start after the auction, and 5 to 10 working day completions leave time inside 28 days if you contact us and instruct a solicitor the same day. The AVM or desktop route is usually worth the extra 0.10% at that point.
Can I use a mortgage instead of a bridging loan at auction?
Rarely, and not safely at a traditional auction. A mortgage takes 6 to 12 weeks against a 28-day deadline. It can work on a modern method sale with 56 days to complete, if the property is mortgageable. Most buyers bridge and refinance afterwards.
Can I get auction bridging finance for an unmortgageable property?
Yes. This is one of the main uses of auction bridging. Lenders assess value and exit, and one facility can fund the purchase and the works. Refurbishment cases can borrow up to 90% LTV.
Is 90% LTV auction bridging available?
Only on refurbishment cases, where the lot is bought to improve and the costed works are part of the facility, with a full RICS valuation. Auction bridging loans without works are capped at 80% LTV, 75% on AVM or desktop routes and 70% with adverse credit.
Can I get auction finance without a valuation?
Often. Standard residential lots up to about £500,000 can often be funded on an AVM, returned the same day with no fee. A desktop valuation is the next fastest route. Commercial, non-standard and higher-value lots need a full RICS inspection.
Can I get auction bridging finance with bad credit?
Yes. Satisfied CCJs, defaults, past arrears and discharged bankruptcy are regularly accepted. Expect about 0.10% per month more and a 70% LTV cap. Disclose everything at the start. A late decline can cost you the deposit.
Does a pre-auction DIP affect my credit file?
No. An indicative DIP is based on what you tell us and needs no hard credit search. Hard searches happen at full application to one chosen lender.
Can a limited company or SPV get an auction bridging loan?
Yes. The company can be set up for the purchase with no trading history. Directors usually give personal guarantees.
What is the modern method of auction and does it need different finance?
A conditional sale where you pay a reservation fee and usually have 28 days to exchange and 56 to complete. The longer window sometimes allows a mortgage, but bridging is common because the fee is non-refundable and many lots are not mortgageable.
What is the difference between guide price and reserve price?
The guide price is a marketing figure. The reserve is the seller's confidential minimum and, under RICS guidance, should not exceed 10% above a single-figure guide. Size your DIP on your real maximum bid.
Do I need to instruct a solicitor before the auction?
Yes. Conveyancing takes up most of the 28 days. A solicitor who has read the legal pack and is on your lender's panel typically saves 3 to 5 days.
When do I need to insure an auction property?
From exchange, which at a traditional auction is when the hammer falls. Most lots need unoccupied-property cover, so arrange it before you bid.
Do I need a survey before bidding?
No lender requires one, but on anything unmortgageable or structurally uncertain it is cheap insurance, typically £400 to £800. At minimum, get a builder to price the works, because the works budget decides whether the deal works at your ceiling.
Is auction finance available in Scotland and Wales?
Yes. Scottish purchases use missives and standard securities, so the lender panel is narrower and a Scottish solicitor is needed. Clean cases complete on similar timescales.
Which auction houses do you arrange auction bridging for?
All of them, across England, Scotland and Wales: national and regional residential catalogues, commercial sales and modern method sales. The sale format and special conditions set your deadline, so send us the catalogue before you bid.
Who wrote this page
Harry Baker
Harry holds an MSc in Real Estate & Finance from the University of Reading. He structures auction purchases across the UK, from pre-auction DIPs and post-hammer rescues to auction plus refurbishment facilities and Scottish completions.
- Team transacted
- £500m+
- Lender panel
- 50+
How we compiled the figures
Rates, LTV limits and fees match our bridging loan calculator, so the numbers agree across the site. Heavy refurbishment ranges come from cases we've placed and are reviewed monthly. Worked examples use these figures, rounded only to the nearest pound.
Sources
- RICS: auction guidance on guide and reserve prices, and valuation standards
- GOV.UK, Stamp Duty Land Tax: rates and the additional-property surcharge
- FCA Handbook, PERG 4: when a loan secured on property is a regulated mortgage contract
- HM Land Registry: title registration in England and Wales
Related bridging products.
Each product page has its own calculator, criteria and rates.
Auction bridging terms before the hammer falls.
No commitment and no credit search. A specialist will confirm the lender, valuation route and timing, usually within the hour. Already won? Tell us your deadline.
- Direct line
- 01451 514563
- Enquiries
- enquiries@auracapital.co.uk
- Office
- 79 Palace Gardens Terrace, Kensington, London W8 4EF
Your property may be repossessed if you do not keep up repayments on a loan secured on it. Auction bridging finance is short-term borrowing and needs a clear, credible exit strategy. Missing an auction completion deadline can mean losing your deposit. All figures on this page are indicative, based on our lender panel in October 2026, and subject to lender underwriting, valuation and legal due diligence. Aura Capital is a trading name of Chammosair Limited, registered in England & Wales, company no. 15786496. Aura Capital is not authorised or regulated by the Financial Conduct Authority and does not arrange regulated loans or give financial advice. Regulated cases are referred to an authorised firm.