Short-term facilities agreed before you bid and drawn on completion — residential, commercial, mixed-use and unmortgageable lots across England, Wales and Scotland.
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Last updated Reviewed by our Clifton International finance team.
In short
How does auction finance work in the UK?
UK auction finance is a bridging loan agreed before the sale and drawn at completion, typically up to 75% loan-to-value at around 0.55%–0.95% per month. Because contracts exchange on the fall of the hammer, the facility is arranged to complete inside the standard 28-day deadline.
Get an agreement in principle before bidding so you know your ceiling.
The 10% deposit on the day comes from your own funds; the bridge funds the balance.
Unmortgageable lots — no kitchen, short lease, fire damage — are financeable.
Exit is a refinance onto a term mortgage or a resale after works.
At a glance
Key facts
Figures reviewed:
Rates
From 0.53% per month
Loan-to-value
Up to 75%
Loan size
£100k – £25m+
Term
3 – 24 months
Interest
Rolled / retained / serviced
Speed
From 7 days
Typical set-up costs
1.5% – 2.5% of loan (arrangement, valuation, legals)Excludes stamp duty; non-resident surcharges may apply.
Adviser response time
Within one working day
Indicative figures for guidance only, correct as at October 2026. Rates, costs and timelines vary by lender, borrower profile, asset and jurisdiction, and are not an offer of finance. How we derive these figures.
Methodology and assumptions
Figures are compiled by Clifton International specialists from live lender term sheets, indicative quotes and completed transactions arranged over the preceding 12 months.
Rates and costs are stated as ranges rather than a single number because pricing is set case-by-case on borrower profile, residency, asset type, location and loan-to-value.
Timelines assume a complete document file from the outset; valuation, legal capacity and (in Spain) NIE and notary availability drive the critical path.
Costs exclude any lender, broker or third-party fees not stated on the page, and exclude currency movement between agreement and drawdown.
Figures are reviewed monthly and re-checked against lender pricing whenever a material market change occurs.
Last reviewed . Read the full Key facts methodology, or speak to our team for a quote based on your circumstances.
At a glance
Auction finance or a standard bridge — how do they differ?
Auction finance is a bridging loan sequenced to a fixed 28-day completion deadline, agreed before you bid rather than after an offer is accepted.
Feature
Auction finance
Standard bridging loan
Trigger
Contracts exchange on the fall of the hammer
Negotiated exchange date
Deadline
Fixed 28 days (sometimes 14)
Flexible timetable
When terms are agreed
Before the sale, against your maximum bid
After an offer is accepted
Deposit on the day
10% of hammer price plus fees, from own funds
Not applicable
Valuation basis
Lower of hammer price and open-market value
Lower of price and value
Typical max LTV
Up to 75% residential, 70% commercial
Up to 75%
Legal pack review
Pre-auction, before bidding
Standard conveyancing after exchange
Risk of losing deposit
Yes, if funding is not ready
Limited before exchange
Swipe the table sideways to see all columns.
Always secure an agreement in principle before bidding — the 10% deposit is non-refundable if you cannot complete.
Terms and a legal-pack review in place before the sale, so you bid with a funded ceiling.
28-day delivery
Facilities engineered around the auction contract, not a standard mortgage timetable.
Unmortgageable stock
Lots term lenders decline — no kitchen or bathroom, short leases, defects — are core bridging business.
Residential and commercial
Houses, flats, shops with flats above, offices, industrial units and land.
Purchase plus works
Add a refurbishment tranche so the lot can be finished and refinanced or sold.
Rolled or retained interest
No monthly payment required — interest can be retained or rolled to the exit.
Borrower eligibility
Who we can help
Investors and developers buying at auction
First-time and experienced landlords with a credible exit
SPVs, LLPs and corporate borrowers
UK residents, expatriates and foreign nationals
Typical lending criteria
Indicative parameters
Rates
From 0.53% per month
Loan-to-value
Up to 75%
Loan size
£100k – £25m+
Term
3 – 24 months
Interest
Rolled / retained / serviced
Speed
From 7 days
Indicative only. Actual terms depend on borrower profile, asset and lender criteria.
Rates this month
UK bridging loan rates
Last updated:
Regulated from
0.53%
per month
Unregulated from
0.55%
per month
Typical arrangement fee
2%
of the loan
Maximum LTV
80%
lender dependent
Lowest published monthly rates across 20 lenders' product guides, checked monthly and approved before publishing. Indicative only — not a quote or recommendation. Clifton International is an introducer, not a lender or adviser, and does not handle client funds. See every lender's rates or compare for your loan.
Recent transactions
Case studies from our files
Published transactions from our own case study library — select any to read the full brief.
Auction finance is a bridging loan sized and underwritten before you bid, then drawn on completion. Contracts exchange on the fall of the hammer and completion is usually 28 days later, so the facility is arranged around that fixed deadline rather than a normal chain.
Two to four weeks is standard for a prepared case, comfortably inside the 28-day window. Where title is clean and a valuation can be instructed immediately, drawdown in around 7–10 days is achievable.
Yes, and you should. We size the facility against the guide price and your maximum bid before the sale so you know your ceiling, and the lender has already reviewed the legal pack.
Typically up to 75% of the lower of purchase price and open-market value on residential lots, and up to 70% on commercial. Because auction lots often sell below market value, lenders may lend against value where a valuer supports it.
Yes. Properties with no kitchen or bathroom, short leases, structural defects, fire damage or without an EPC are routinely bridged where the works and exit are credible — that is exactly the space term lenders will not enter.
Auction houses generally require 10% of the hammer price plus fees on the day, from your own funds. The bridging facility funds the balance at completion.
Yes — shops with flats above, offices, industrial units and land with or without planning are all financeable, usually at slightly lower LTV than residential.
The loan is sized on the lower of price and value, so you may need to increase your cash contribution. Agreeing a maximum bid against a pre-auction indicative valuation avoids this.
Currency exchange
Funds coming from abroad? Plan the currency with the finance.
If any of your deposit, proceeds or income is held outside sterling, the rate you convert at matters as much as the mortgage rate. We can introduce you to an FCA-authorised currency specialist so your funds arrive on time for completion.
Fix today’s rate for a future completion date
Typically tighter margins than a bank international transfer
Transfers coordinated with your solicitor’s completion timetable
Clifton introduces clients to a specialist currency partner and does not hold, convert or transfer client funds.
Each page covers the structure, criteria, costs and typical timescales for one bridging use case — with real completed transactions.
UK bridging market, Q2 2026
Last updated · next update due November 2026
Average monthly interest rate
0.81%
Q1 2026: 0.82%
Average loan-to-value
55%
Q1 2026: 52%
Average completion time
46 days
Q1 2026: 53 days
Average term
12 months
Q1 2026: 12 months
Market averages across completed deals, summarised from Bridging Trends (compiled by MT Finance). Refreshed quarterly; not our panel pricing. Full market data.
