Auction Finance
Fast Bridging Loans for Property Auctions
Fast Bridging
Buying property at auction can unlock unbeatable opportunities — below-market prices, unique sites, and fast completions. But it also comes with one big challenge: the 28-day deadline.
Once the hammer falls, buyers typically have 20 working days to complete — and that’s where many deals collapse. Traditional mortgage lenders can’t work within those timeframes, and cash buyers dominate the market.
That’s where auction finance comes in. At Aura Capital, we arrange fast bridging loans that enable buyers to complete their auction purchases quickly, confidently, and without delays. Whether you’re a first-time auction buyer or a seasoned property developer, we help you secure the funding you need before your completion deadline.
What Is Auction Finance?
Auction finance (also known as an auction bridging loan) is a short-term loan designed to help you complete the purchase of an auction property quickly, usually within 28 days.
It’s a type of bridging finance, meaning it’s secured against property and repaid when you sell, refinance, or exit to a mortgage.
Typical uses include:
Purchasing a property at auction when mortgage lenders can’t act fast enough
Funding uninhabitable or unmortgageable properties
Financing heavy refurbishments or conversions
Releasing equity to fund additional purchases
Bridging while waiting for a sale or remortgage to complete
Because auction properties often require work or have title issues, bridging lenders focus on the asset’s value and your exit strategy, not your credit score or income profile.
Why Auction Buyers Use Bridging Finance
Auction bridging loans are designed to solve the two biggest problems with auctions: speed and flexibility.
Here’s why thousands of UK buyers choose auction finance every year:
Fast completions: Funds can be released in as little as 5–10 days.
Asset-based lending: Approval focuses on the property, not credit history.
Finance for any property type: From residential to commercial, mixed-use, or land.
No valuation delays: Many lenders accept desktop or AVM valuations.
Flexible exit routes: Sell, refinance, or refinance onto a mortgage.
Works with all buyer types: Individuals, limited companies, SPVs, or developers.
At auction, speed is everything. A bridging loan ensures you never lose a winning bid due to funding delays.
How Auction Finance Works — Step by Step
Pre-Auction Approval
Speak to Aura Capital before the auction. We’ll assess your budget and get you a Decision in Principle (DIP) within 24 hours, giving you proof of funds before you bid.
Auction Day
When you win a property, you’ll pay a 10% deposit immediately and sign the contract — committing to complete within 28 days.Valuation & Underwriting
A desktop or physical valuation confirms property value. Lenders review your exit plan and legal pack.Completion & Drawdown
Once approved, funds are released directly to your solicitor — ensuring you meet your completion deadline.Exit
After purchase, you can refinance onto a mortgage, sell the property, or use it for development.
Aura Capital coordinates every stage so there are no delays or surprises — from initial approval to final drawdown.
Who Uses Auction Finance?
Auction finance suits a wide range of buyers, including:
Property investors buying below-market deals
Developers purchasing land or conversion projects
Landlords acquiring HMOs or multi-unit blocks
Homebuyers purchasing unmortgageable homes
Portfolio landlords refinancing or expanding holdings
Whether you’re buying a flat in need of work or a commercial building for redevelopment, bridging ensures you can act decisively.
What Types of Properties Qualify?
Auction bridging loans can fund almost any property type, including:
Residential houses or flats
Uninhabitable properties (no kitchen, bathroom, or heating)
Mixed-use buildings
Commercial or semi-commercial assets
Land with or without planning permission
Development or refurbishment opportunities
Lenders evaluate the property’s open market value (OMV) or gross development value (GDV), depending on your exit plan.
Why Aura Capital for Auction Bridging?
At Aura Capital, we specialise in no-delay, no-nonsense auction finance. Our clients benefit from:
Same-day DIP approvals
Access to 40+ auction lenders
Competitive rates from 0.55% per month
No upfront fees
Desktop or AVM valuations available
Flexible terms from 1–24 months
Loans from £50,000 to £5 million+
We don’t just find you a lender — we handle the entire process, liaising with valuers, solicitors, and underwriters to make sure you complete before the deadline.
Key Benefits of Auction Bridging Loans
1. Speed of Completion
Auction finance is built for deadlines. With Aura Capital, approval takes hours, not weeks.
2. Finance for Unmortgageable Properties
Many auction properties can’t be mortgaged in their current state — bridging removes that barrier.
3. Chain-Free Transactions
Bridging loans provide certainty, removing the risk of chains collapsing.
4. Short-Term Flexibility
Terms from 1–24 months, with options to roll up interest, avoid monthly payments, and repay early without penalty.
5. Unlocking Below-Market Opportunities
Speed allows buyers to act fast and secure deals others miss — often at 10–25% below valuation.
The Aura Capital Advantage
Whole-of-market access: Compare multiple specialist lenders in one place.
Transparent terms: No hidden costs, no upfront broker fees.
Speed & precision: Decisions in 24 hours, completions within a week.
Personal service: One expert handles your case from enquiry to completion.
Strategic exit planning: We help structure your loan for a clean refinance or sale.
Our focus is simple — deliver fast, flexible, and reliable funding that helps you win at auction.
Costs of Auction Finance
Rates depend on the property, LTV, and borrower profile, but are typically:
Interest rates: from 0.49% per month
Arrangement fee: 1–2%
Valuation & legal fees: payable upfront
Exit fee: often 0–1%, sometimes waived
Loan term: 1–24 months
Because Aura Capital operates whole-of-market, we often secure deals with no exit fees and rolled-up interest, meaning no monthly payments — ideal for investors managing tight timelines.
Auction Finance vs Traditional Mortgages
Auction Finance
Completion in as little as 5–10 days
Suitable for unmortgageable or uninhabitable property
Focus on asset value, not borrower income
Short-term (up to 24 months)
Easy refinance or sale exit
Traditional Mortgage
Takes 8–12 weeks to complete
Strict credit and income checks
Property must be habitable
Long-term (15–30 years)
In auction buying, bridging is the only realistic way to guarantee completion within the 28-day window.
Preparing Before You Bid
To strengthen your position before the auction:
Get pre-approved. Aura Capital can issue a DIP within 24 hours.
Review the legal pack carefully. Check leases, covenants, and title conditions.
Set a clear budget. Include stamp duty, legal fees, and refurb costs.
Plan your exit. Know whether you’ll refinance or sell post-completion.
Engage a solicitor early. Choose one familiar with auction bridging.
Being prepared means you can bid confidently — and complete without stress.
Refurbishment and Development Auctions
Many investors use auction bridging to buy properties requiring work — from light refurbs to full conversions. Aura Capital structures loans to fund both purchase and works, often releasing money in stages.
Example projects include:
Converting houses into HMOs (link to HMO Bridging Finance)
Refurbishing rundown properties for resale
Converting commercial units to residential
Adding value through extensions or upgrades
These value-add opportunities can deliver significant profit when funded efficiently.
Risks and How to Avoid Them
Underestimating costs: Factor in refurb, stamp duty, and lender fees.
Unclear exit strategy: Always plan how you’ll repay the loan.
Valuation shortfalls: Work with brokers who understand GDV and auction pricing.
Delays in legal work: Choose experienced auction solicitors.
Aura Capital anticipates these issues and structures deals proactively to prevent them impacting your completion.
Frequently Asked Questions
Can I get auction finance if I have bad credit?
Yes. Many bridging lenders accept borrowers with past credit issues if the deal and exit are solid.
How long does auction finance take?
From initial enquiry to drawdown, it typically takes 5–10 days.
Do I need to have won the property before applying?
No — you can get pre-approved before bidding for confidence and proof of funds.
What happens if completion takes longer than 28 days?
We can liaise with the vendor or auction house and lenders to arrange an extension or refinance.
Can I use bridging to buy land or commercial property at auction?
Yes — lenders fund land, mixed-use, and commercial assets.
Can I refinance after works are complete?
Absolutely. Once refurbishments are done, you can refinance onto a long-term mortgage.
Can first-time buyers apply for auction finance?
Yes. Aura Capital works with lenders who accept first-time investors and homeowners.
Glossary of Key Terms
AVM (Automated Valuation Model): A digital desktop valuation using comparable sales data.
DIP (Decision in Principle): An initial lender agreement confirming loan eligibility.
GDV (Gross Development Value): The estimated value of the property after improvement.
Exit Strategy: The method of repaying the bridging loan (usually sale or refinance).
OMV (Open Market Value): The property’s value in its current state.
Market Outlook – Auction Finance in 2025
The UK property auction market continues to thrive, fuelled by fast transactions, growing investor interest, and competitive online auction platforms.
Key 2025 trends include:
Increased demand for bridging: Over 40% of auction buyers now use short-term finance.
Rise of online auctions: Platforms like SDL, iamsold, and Auction House make bidding accessible nationwide.
Tight mortgage conditions: With mainstream lenders slower to act, bridging fills the funding gap.
Investor confidence: More developers and landlords are turning to auctions for below-market deals.
Auction finance has evolved from a niche solution to a mainstream investment tool — and Aura Capital remains at the forefront of fast, reliable funding for buyers who move quickly.
Why Borrowers Choose Aura Capital
Speed: Decisions within 24 hours, completion in under 10 days.
Whole-of-market reach: Access to 40+ lenders.
Competitive rates: From 0.55% per month.
Specialist support: We handle valuation, legal and lender negotiation.
Transparent process: No upfront fees, no surprises.
From first-time buyers to large-scale developers, Aura Capital provides the experience and network needed to close deals smoothly and profitably.
Secure Your Auction Finance Today
Don’t risk losing your property due to slow lenders. Aura Capital specialises in fast, flexible auction finance — helping you complete on time, every time.
Speak with an Aura Capital specialist today to secure your Decision in Principle within 24 hours and funding within days.
When the hammer falls, you can count on us to deliver.
