| Completion deadline | Usually 28 days for traditional auctions; check the legal pack |
|---|---|
| Typical loan | Up to around 70–75% of value, more with extra security |
| Deposit on the day | Usually 10% plus buyer's fees |
| Term | Typically 3 to 18 months |
| Repaid by | Refinance to a mortgage, or sale |
| Main risk | Missing completion and losing your deposit |
Before you bid: the finance checklist
- Read the legal pack, especially the special conditions, completion date and any extra buyer's fees.
- Check the property is lendable. Short leases, non-standard construction, no kitchen or bathroom, or title problems can narrow the lenders available. Send us the lot number and we will check.
- Set your maximum bid including the deposit, buyer's premium, stamp duty, legal and finance costs.
- Get a decision in principle and line up a valuer, so the valuation can be booked the day after the auction.
- Instruct a solicitor who is used to auction timescales, and ask them to review the pack before the sale.
- Plan the exit: the mortgage or sale that will repay the bridge, and how long works will take.
How auction bridging works
You pay the deposit (usually 10%) on the day. The bridging loan funds the balance of the purchase, and sometimes works too. Valuation and legal work run in parallel to meet the deadline. Once any works are complete, you refinance onto a buy-to-let, residential or commercial mortgage, or sell. Missing the completion date can mean losing your deposit and paying the seller's costs, so the finance must be ready.
Read more: Auction finance: how to complete in 28 days.
Traditional vs modern method auctions
At a traditional auction you exchange on the fall of the hammer and usually complete in 28 days. Under the modern method of auction, you typically pay a reservation fee and have a longer period, often 56 days, to exchange and complete. The longer timescale can allow a mortgage instead of a bridge, but reservation fees are usually non-refundable, so check the terms carefully.
Upcoming property auctions
We keep a list of upcoming residential and commercial property auctions across the UK, in the room and online, with the finance steps to take before each one. See the property auction calendar.
Check your dealIndicative borrowing, total cost and the questions a lender will ask, in about two minutes.
Open the deal checkerExample cases
Illustrative examples based on the type of case we arrange. Not specific clients; every case is different.
£185,500 auction bridging loan at 70% LTV completed in 16 days in Southend
£595,000 bridging loan at 70% LTV to buy and extend a short-lease Kensington flat
Frequently asked questions
Can I get a mortgage to buy at auction?
Sometimes, but most mortgage lenders cannot complete within the usual 28 days. Many buyers use a bridging loan to complete and then refinance to a mortgage once the property is owned, and any works are done.
How much deposit do I need at a property auction?
Usually 10% of the purchase price on the day, plus the auctioneer's buyer's fee. The bridging loan then covers some or all of the balance, typically up to around 70–75% of value.
Should I arrange finance before the auction?
Yes. Arrange your finance before you bid, so you know your maximum bid and that lenders will accept the property. If you cannot complete within the deadline, you may lose your deposit.
How quickly can auction bridging complete?
Straightforward cases can complete within the 28 days, and sometimes faster, when valuation and legal work start straight after the auction or before it.
Can I buy a property with no kitchen or bathroom at auction?
Yes. Bridging lenders will often lend on properties that are not yet mortgageable. Plan the works and the refinance carefully so they finish well within the bridging term.
Important: Bridging and development finance are short-term, secured borrowing and can be expensive. You need a clear, realistic exit plan. Loans secured on a home you live in may be FCA-regulated; most others are not. Your property may be repossessed if you do not keep up repayments.