Auction Finance

It is used to purchase residential or commercial properties at auction, giving buyers the ability to complete within strict deadlines when mortgages are not feasible.

In many cases, funds can be released within days, giving buyers the speed needed to meet the 28-day completion deadline. Using a broker helps streamline the process.

Yes. While it works in a similar way, auction bridging finance is tailored to the timescales and conditions of property auctions, making speed the main priority.

Lenders may consider residential, commercial, mixed-use or buy-to-let properties, though criteria vary. A broker can help match your target property with the right lender.

Not necessarily. Many buyers arrange finance in principle before the auction so they can bid with confidence, then finalise the loan once a property is secured.

The amount depends on the property’s value and the lender’s loan-to-value limits. Typically, borrowers contribute a deposit of 25–30% of the purchase price.

Expect monthly interest plus arrangement, valuation and legal fees. A broker will set out all likely costs at the start so you know the total borrowing figure.

Repayment is usually made in full at the end of the term, most often by refinancing with a mortgage or selling the property.

Many lenders allow early repayment, but some require a minimum interest period or charge an exit fee. Always check the terms carefully.

It can be, though lenders will look closely at your circumstances. Using a broker helps first-time buyers navigate the process and find lenders open to their situation.