Can I get a mortgage for an auction purchase?

Standard mortgages rarely complete within 28 days. Bridging finance is the standard approach, with a remortgage afterwards. Some modern auctions allow 56 days, which may suit a fast-tracked mortgage.

Do I need an agreement in principle before the auction?

Strongly recommended. Having finance pre-approved means you can bid confidently and move quickly after winning.

What if the property needs work?

Many auction properties need refurbishment. Bridging lenders can include renovation costs in the loan, released in stages as work progresses.

What happens if I can't remortgage?

Your exit strategy is agreed upfront. If the remortgage is delayed, most bridging lenders allow term extensions (at additional cost). Having a clear exit plan is essential.

Auction Finance

Auction purchases require completion within 28 days. We arrange auction finance quickly so you never miss a deadline.

Finance for Auction Property Purchases

When you buy at auction, the hammer falls and you're legally committed — with just 28 days to complete. Standard mortgages can't meet this timeline, which is why auction finance (a type of bridging loan) exists. It provides fast funding to complete on time, with the intention of remortgaging onto a standard mortgage afterwards. We arrange auction finance from specialist lenders who understand the urgency.

Finance arranged within 28-day auction deadlines
Agreement in principle before auction day
Residential and commercial auction properties
Refurbishment costs can be included
100% fee-free auction finance advice

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Property Value (£) *

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Your home may be repossessed if you do not keep up repayments on your mortgage.

How Auction Finance Works

You arrange an agreement in principle before auction day. When you win the lot, the full application is submitted immediately. The bridging lender values the property and releases funds within the 28-day deadline. You then remortgage onto a standard mortgage (the 'exit') within 6-12 months.

Pre-Auction Preparation

The key to successful auction finance is preparation. Before the auction, get a bridging agreement in principle, have your solicitor review the legal pack, arrange a survey if possible, and confirm your maximum bid based on the property's value and your finance terms.

Costs and Rates

Auction bridging typically costs 0.55-1.2% per month in interest, plus an arrangement fee of 1-2%. Interest can be rolled up (added to the loan balance) so you don't pay monthly. The total cost for a 6-month bridge on £200,000 might be £8,000-£15,000.

Modern Method of Auction

Many auction houses now use the 'modern method of auction' with a 56-day completion window. This gives more time than traditional auctions and may allow a standard mortgage rather than bridging — though bridging remains the safest option to ensure deadline compliance.