Bridging — Auction Finance
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
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.
At a glance
Figures reviewed:
Indicative figures for guidance only, correct as at July 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.
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 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.
Why clients choose us
Terms and a legal-pack review in place before the sale, so you bid with a funded ceiling.
Facilities engineered around the auction contract, not a standard mortgage timetable.
Lots term lenders decline — no kitchen or bathroom, short leases, defects — are core bridging business.
Houses, flats, shops with flats above, offices, industrial units and land.
Add a refurbishment tranche so the lot can be finished and refinanced or sold.
No monthly payment required — interest can be retained or rolled to the exit.
Borrower eligibility
Typical lending criteria
Indicative only. Actual terms depend on borrower profile, asset and lender criteria.
Recent transactions
Published transactions from our own case study library — select any to read the full brief.
Leeds · Bridging
£1.3m · 65% LTV · 12-month regulated bridge
£1.3m regulated bridge to help a Leeds family secure a significantly larger home before selling their existing property — funded in under 3 weeks.
Malaga · Bridging
£230k · c.25% LTV · 36 days to completion
A regulated bridging loan raised against an unencumbered Edinburgh home to secure a £230k apartment in Malaga, Spain — completed in 36 days.
Oxfordshire · Bridging
£1.2m · 60% LTV · chain-break bridge
£1.2m chain-break bridge that saved a rural Oxfordshire purchase after the buyers' onward sale collapsed at the eleventh hour.
Frequently asked
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.
UK bridging finance by scenario
Each page covers the structure, criteria, costs and typical timescales for one bridging use case — with real completed transactions.
Calculate interest, arrangement and exit fees, valuation and legals — with a fully worked £510,000 example.
View pageRegulated and unregulated lender panels compared — and why bridging is placed through a specialist, not shopped direct.
View pageComplete on your onward purchase when a buyer withdraws or the chain collapses.
View pageRefinance a completed scheme onto cheaper short-term debt while units sell.
View pageWhich regime applies to your case, and what changes in criteria, cost and process.
View pageRaise capital behind an existing mortgage without disturbing the first charge.
View pageUK-secured short-term finance for British expatriates, foreign nationals and offshore SPVs.
View pagePurchase-plus-works and heavy refurbishment finance with staged drawdowns.
View pageRelated UK services
Residential, buy-to-let and high-value mortgages for UK and international clients.
Learn moreFast short-term funding for auctions, chain-breaks, refurbishments and exits.
Learn moreSenior debt and stretched-senior facilities for residential and mixed-use schemes.
Learn moreInvestment and owner-occupier funding for offices, hospitality, retail and logistics.
Learn moreImproved terms, capital raising and exit refinance for maturing UK facilities.
Learn moreReady to explore your options?
Tell us the lot and your maximum bid. A specialist will come back within one working day with indicative terms you can bid against.