Auction bridging

Auction finance, funding ready for the 28 day deadline

When the hammer falls you are contractually committed, and most auction contracts require completion within 28 days. Auction finance exists to meet that clock, and the work that decides whether you make it happens before you bid, not after.

Category: How it works

Product: Bridging Finance

Typical deadline: 28 days from the hammer
Deposit: Usually 10% on the day
Security: The auction lot itself
Exit: Refinance or sale after works

What the 28 days actually contains

The countdown covers valuation, legal work on both sides, searches or search indemnity, and drawdown. That is a compressed timetable for a process that ordinarily runs at its own pace, which is why lenders who genuinely do auction work run their valuation and legal panels differently. Timescales still depend on the lender, the solicitors and the property, so nothing here is a guarantee of completion.

Read the legal pack before bidding, not after
Instruct a solicitor who has worked to auction deadlines
Have proof of deposit and exit evidence ready
Agree indicative terms in principle before the sale

Preparation beats speed

The buyers who complete comfortably are the ones who spoke to a broker before the catalogue closed. With the lot identified, the legal pack reviewed and an indicative structure agreed, the application starts on day one rather than day six. Buyers who call after the hammer lose the most valuable week of the four.

Lots that need a specialist view

Short leases, missing title documents, properties without a kitchen or bathroom, mixed use blocks, ex local authority stock and land with lapsed consent all narrow the lender list. They are financeable, but only by lenders who price that risk. Sending such a lot to a mainstream lender wastes the clock.

Planning the exit before the bid

Auction bridging is repaid by sale or by refinance onto term debt. If the plan is refinance, the property has to reach a condition and value that a term lender will accept, and the rental or trading figures have to support it. We look at the exit alongside the purchase so the finish is designed at the start.

Frequently asked

Can finance be arranged after I have already bid?

It is often possible, but the timetable is tighter and lender choice narrows. Speaking to a broker before the auction gives you far more room.

What happens if I miss the completion deadline?

That is a contractual matter between you and the auction house, and it can mean penalty interest or loss of your deposit. Check the contract terms in the legal pack.

Do lenders finance unmortgageable auction lots?

Specialist bridging lenders will consider property that term lenders will not, subject to valuation and their own criteria.

How much deposit do I need for an auction purchase?

Auction houses generally require 10% on the day, plus fees. The balance of your contribution depends on the lender's view of the lot.

Can you look at a legal pack before I bid?

Yes. Send the lot details and pack over and we will flag anything that is likely to affect fundability.

Bidding soon

Call 0345 2690628 with the lot details before the auction and we will tell you what is realistic.

Call 0345 2690628 Send your deal details