Auction Finance

Compare and choose from the widest selection of auction finance providers across the UK


Secure Auction Finance Quickly Using Brickflow

Brickflow is the best way to secure the most competitive auction finance in the UK, and quickly. It takes just three simple steps:

  • SEARCH & COMPARE loans from 40+ auction bridging lenders instantly
  • RECEIVE a same-day DIP (our record is 7 minutes!)
  • APPLY directly from the platform with your advisor or a Brickflow partner

With our live market search, it takes just seconds to enter the details of your property and compare loans from the breadth of the bridging market. You can find out exactly how much you can borrow and how much it will cost, with details on the latest interest rates, lender fees and maximum LTV ratios for your specific project. You can also model your project against live loan costs, so you can quickly check if your deal stacks (and calculate your maximum bidding price on the property).

Our bridging loan calculator is the only real-time loan calculator on the market that gives you instant access to auction finance options, so you can be confident you’ll find the best deal available.

What’s more, when you apply for auction bridging finance through Brickflow, you can use our 1x online application to apply to any lender. If one lender says no, instead of a new form fill, it’s one click to send to a different lender . It covers everything lenders need to know to make quick and reliable decisions. So you can secure your loan in days.

How Brickflow works

The quickest & easiest way to search for auction bridging finance

Compare loans from 40+ auction finance lenders

See how much you could borrow against a specific project & at what rate

Check detailed eligibility criteria to avoid wasting time & money

Ensure your deal stacks & make smarter investment decisions


Hear what borrowers, brokers & lenders have to say

Concept Group

Areeb Azam

"The benefit of Brickflow is instant information in a snapshot. You can see what various lenders are going to offer you, meaning you can move more quickly on deals and put an offer in."


Julian Ingall

"This is incredibly useful technology. Twelve months ago, we knew what lenders' pricing and appetite was - but today, in an ever changing market place, it's incredibly difficult to keep up."


Bob Rowbotham

“A comprehensive and clear information pack from Brickflow allowing for a full understanding of the proposition, allowing me to asses and provide robust Indicative Terms for the Client."

Ready to run your numbers through Brickflow?


What is Auction Finance and How Does It Work?

Auction finance is a type of bridging loan that can be used by property investors and developers to purchase properties at auction. 

Buying a property at auction is not the same as buying via traditional sales and finance processes. Firstly, if you win the bid, you must pay a deposit of 10% of the purchase price on the day of the auction.

Secondly, the sale must normally be completed within 28 days, or you will most likely lose your deposit and right to buy the property. Traditional long-term finance solutions can’t match these short timelines, hence the need for fast, flexible auction property finance.

Auction finance works like most other bridging loans in that it is a short-term loan that acts like a quick cash injection. Interest is charged monthly but rolled up and paid at the end of the loan term – so the loan usually doesn’t have to be serviced on a monthly basis. The loan is secured against the property, or with additional properties, and repaid by selling or refinancing.

Criteria Requirements When Securing Auction Finance

Criteria requirements for auction finance will vary from lender to lender, but in general eligibility and criteria requirements will be as follows:

 The Borrower
  • Age 18+
  • UK resident, UK national living abroad (for unregulated bridging loans, there are limited options for non-UK nationals)
  • Employed, self-employed or retired
  • Individuals, partnerships, LLP, Limited companies
Loan to Value (LTV) 
  • Up to 75% LTV
Loan Amount
  • £25,000 - £100 million, currently available on Brickflow
Loan Term
  • 1 – 24 months; most lenders offer 12 or 18-month terms
Arrangement Time
  • 2-3 days – 4 weeks, with c. 14 days being most common for a fast bridging loan solution
Property Types
  • Residential, commercial, mixed-use, uninhabitable, unmortgageable or land
  • Secured against the property. Additional properties or, in some cases, other high-value assets could be used
Exit Strategy
  • Sale or refinance
  • Rolled-up or serviced
Auction Finance Rates
  • From 7% - 15% currently (Q2 2024)*
Adverse Credit
  • Accepted on a case-by-case basis, but lenders are primarily concerned with the strength of the exit strategy and the project
  • Where the auction purchase will be a development project, evidence of successfully completing similar projects will bolster an application, but it isn’t always a requirement
  • Unless the loan is serviced monthly, income is not the lender’s main concern (but they will ask)

*The interest rate you pay is determined by various factors, including the LTV of the property, property type and condition, your planned project, your exit strategy, and your own strength as a borrower, primarily your experience of doing the same, net asset value, and credit file

Benefits of Auction Finance

  • Quick completion times: 2-3 days – 4 weeks (traditional mortgages take upwards of 10 weeks)
  • Flexible borrowing: Auction bridging finance typically doesn’t incur any early repayment penalties after the minimum term has been met
  • Creates market opportunities: As well as longer timescales, traditional mortgages typically don’t offer finance for the types of property often found at auction, such as uninhabitable properties
  • Rolled-up interest: Borrowers lacking disposable income don’t have to meet costs from the first month of loan draw-down
  • Less stringent criteria: Assessed on property value, project viability and securing assets, so it’s still possible to secure auction finance with poor credit history or cash flow problems
  • Can be unregulated: Hence, lender flexibility and speed to arrangey)

To find out more, read our guide about the pros (and cons) of bridging loans.

Costs & Fees Associated with Auction Finance

Auction Finance loan rates

Currently, bridging lenders on the Brickflow platform are offering auction finance rates between 7% and 15%.

Lower LTV applications can secure lower rates, but around a 40% deposit is required for the better rates to kick in.

On Brickflow, you can instantly search loans from over 40 bridging lenders to see live borrowing results and find out exactly what rates you could secure for your project.

Additional costs to consider

  • Valuation or survey fees: Lenders should provide quotes from more than one firm and let you decide
  • Legal fees: The lender’s legal fees, as well as your own
  • Broker fees: Normally paid by the lender
  • Arrangement fees: Up to 2% of the net or gross loan
  • Exit fees: They can exist but are not that common for bridging finance. Almost none of the lenders on the Brickflow platform charge exit fees, but they instead might stipulate minimum loan term – between 1 & 6 months normally
  • Auction house administration fee: Payable along with the 10% deposit; it can be a fixed fee or a percentage of the purchase price. Details will be given in the information catalogue (these may differ from one auction house to another). 

What Properties Does Property Auction Finance Cover?

Property Auction Finance can be used for residential, mixed-use and commercial properties (as an investment or owner-occupied), as well as funding land purchases.

Types of residential properties that auction finance can cover:

  • Houses and flats
  • Uninhabitable or unmortgageable housing - no working kitchen or bathroom, disconnected utilities, structurally unsound, made of non-standard construction.

Types of commercial properties that auction finance can cover:

  • Care and Retirement homes
  • Education
  • Light and Heavy Industrial
  • Hotel
  • Leisure complexes
  • Licenced HMO
  • Medical
  • Mixed Use (part residential, part commercial)
  • Mixed Use (All commercial)
  • Multi-Unit Freehold Block (MUFB)
  • Office
  • Retail
  • Student
  • Any commercial property not in immediately habitable condition

Tips for Securing Auction Finance

When buying a property at auction, the first and most important rule is to stick to your budget. Seasoned property investors know this well, but if you’re new to buying at auction, it’s easy to get swept up in the moment.

To accurately calculate the ceiling price for your auction purchase, you need to understand your borrowing costs. When you know the exact borrowing costs, you can work backwards to calculate your profit and the maximum price you should pay for the property in order for the deal to be viable.

Running your project numbers through Brickflow is the quickest, most accurate way to calculate auction finance costs, and it takes just 30 seconds.

If you’re sure you’ve got a deal that stacks, then lenders will see that too. So here are our top tips for securing auction finance:

  • Prepare your documentation as soon as possible: Including ID, proof of address, your financials and your developer CV if necessary
  • Present your project professionally: If your auction purchase is a development project, show the lender how you will use the loan, specifics on building costs, completion timescales and expected GDV with supporting market research
  • Don’t be fluffy about your exit strategy: A lender’s primary concern is how they will be repaid. Make sure you’re clear about your plans and don’t say, ‘I’ll maybe sell, maybe rent, depending on the market.’ If you plan to refinance but have credit issues, securing a mortgage could be difficult, making your exit strategy risky for lenders
  • Be upfront about credit issues: Tell lenders from the get-go about any previous bankruptcy, CCJs or other issues
  • Work with a specialist bridging broker: Brokers have a depth of knowledge that they’ve gathered over years of working in the industry, day-in and day-out. They know the market better than you ever can – tap into their expertise and networks to ensure you get the right loan
  • Choose the right lender: Your broker will know who to work with to get your auction finance over the line on time and at the right price
  • Choose the right solicitor: A solicitor with no experience in bridging loans can drastically hold up progress of the loan – when you only have 28 days to complete, don’t take that risk

Refinancing Your Auction Property Purchase

Once you’ve bought your auction property, you’ll repay your auction finance by selling or refinancing. This will depend on the type of property you bought and what you plan to do with it. 

You might have purchased, refurbished and sold the auction property within the agreed loan term. Or you may want to refinance onto one of the following loan types:

  • Development finance: For large-scale development work, where planning permission may be required (residential or commercial)
  • Commercial mortgage: Long-term finance for commercial and semi-commercial investment properties or owner-occupied
  • Buy-to-let mortgage: If you’re buying a residential investment property that you plan to keep and let out
  • Personal mortgage: If your auction purchase is a home for you to live in

Auction Loan Examples

To better understand how finance for auction property works, we’ve outlined some examples of auction loans.

Scenario A: Purchase a bridging loan on a £250,000 residential property purchase

Auction Property Finance

In this example loan, lender costs (interest for the full term + arrangement fees) equals £21,657, leaving the borrower with a net loan of £165,843 and deposit requirements of £84,157 (£25,000 of which will have been paid at the auction).

Scenario B: Refurbishment Bridging

If the auction property requires some level of work, refurbishment bridging can be used, allowing costs for the works to be added to the loan. For a residential purchase of £200,000 with £50,000 of refurbishment required and an end GDV of £340,000, an example loan would look like this:

Auction Finance

Here, the lender offers both a property loan (land loan) and a build loan, with the borrower requiring £60,000 in deposit.

How To Apply For Auction Finance

The easiest and quickest way to apply for auction finance is by using Brickflow.

  1. SEARCH & COMPARE live loans from 40+ bridging lenders, instantly
  2. RECEIVE a same-day DIP (our record is 7 minutes)
  3. APPLY for a loan using our lender-favoured online application

Here’s how it works:

  • Input data – Enter the details of your auction purchase into Brickflow’s bridging loan calculator – It takes seconds
  • Instantly search the breadth of the market – With over 40 bridging lenders on the Brickflow platform, including banks, non-banks and specialist lenders, you can be confident you’ll find the best deal
  • Compare and shortlist your preferred loans – Your search results will show you live market loan options with details on LTVs, interest rates, fees and deposit requirements.
  • Submit to multiple lenders directly from the platform – With your broker or a Brickflow partner, you can submit your loan application to multiple lenders using our digital application form, cutting out any repetitive form-filling
  • Receive your same-day DIP (Decision in Principle) – Our record for receiving a DIP back is 7 minutes!
  • Apply online – After looking over your DIPs, apply to your preferred lender. Your broker will manage your application and ensure you’re happy with the loan terms. Lenders love applications from the Brickflow platform because we cover everything they need to know to make quick and reliable credit decisions. Missing or incorrect information can easily (and very often does) delay securing your bridging loan

Search for your auction finance now and see the great deals available on Brickflow.


Auction Finance FAQs

How does property auction finance work?

Auction finance is a type of bridging loan that can be used by property investors and developers to purchase properties at (unsurprisingly) auction. 

Like most other bridging loans, auction finance is a short-term loan that is secured against the property and / or additional properties. Bridging loans are quick to arrange, taking around 7 days - six weeks, which means they can meet the short time-frames required to complete an auction purchase. They can be unregulated meaning less bureaucracy to get through. Interest is charged monthly but rolled up and paid at the end of the loan term – so the loan usually doesn’t have to be serviced on a monthly basis. The loan is repaid by selling or refinancing.

How does a property auction work?

Property auctions allow buyers to bid on properties they are interested in. Typically, auction properties are listed online for around one month prior to the auction, giving buyers time to view and do due diligence. There is usually a set day and time for the auction, with bidders in the room, online, or on the phone. The seller will set a reserve price—the lowest amount they are willing to sell the property for.

When buying at auction, the successful bidder pays a deposit of 10% of the property purchase price on the day of the auction. They then have 28 days to complete the sale. 

Is auction property a good investment?

Auction properties can often be well below market value and are a great place to find good renovation projects. The process is transparent, and unlike when buying traditionally, you know exactly how much you have to bid to beat the highest offer.

But if you don’t carry out the right due diligence, properly research the market, stick to your budget or check the cost of your finances beforehand, you could end up overpaying for the property.

How much can I borrow and in what timeframe?

If you’re looking for auction finance on Brickflow, you can borrow between £25,000 and £60 million. You could have a Decision in Principle on your application within just 7 minutes (that’s our record so far), and will typically be arranged in 1 - 4 weeks. 

Where there’s a desktop survey, search indemnity and low leverage, a loan can complete in as little as 2 to 3 days, but it’s not the norm and 7 days minimum is much more realistic.

Is it risky to buy a house at auction?

Yes, it can be riskier than buying a property through an estate agent. Firstly, if you withdraw from the sale for whatever reason, you will lose your deposit, which is paid on the day of the auction. 

Also, for less experienced property investors, it’s easy to get carried away at an auction and exceed your budget for the property you want. 

Is property auction finance the same as a bridging loan?

Yes, auction finance is a type of bridging loan. Depending on the property and any intended development work, you can finance an auction purchase with either refurbishment bridging or purchase bridging.

How quickly can you secure property auction finance?

With desktop surveys, search indemnity and at low leverage, it’s possible to complete a loan in just 2 to 3 days. Despite plenty of people advertising these ultra-short turn-around times, it isn’t actually the norm. A more realistic minimum timeframe is  7 days to secure auction finance, and anything up to 4 weeks is still pretty quick. 

Can you get auction finance with bad credit?

Yes, you can likely secure auction finance with bad credit, although IVA’s / CVA’s and bankruptcies would normally be a step too far. Lenders might mitigate their risks with higher rates or extra security, such as additional properties. In this case, further evaluations would be required, which could delay the process.

Generally, bad credit shouldn’t prevent you from securing a bridging loan since the lender will primarily base their decision on the strength of your exit strategy.

Read more about securing a bridging loan with bad credit.