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 50+ auction bridging lenders instantly
- RECEIVE a same-day Decision in Principle (DIP)–our record is 4 minutes!
- APPLY directly from the platform with your advisor or a Brickflow partner
Enter the details of your property into our bridging loan calculator and compare loans from the breadth of the bridging market, instantly. Find out exactly how much you can borrow and at what cost, with details on the latest rates, lender fees and maximum LTV ratios for your specific project.
By modelling your project against live loan costs, you can quickly check if your deal stacks (and calculate your maximum bidding price on the property).
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.
Compare loans from 50+ 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
What is Auction Finance and How Does It Work?
Auction finance is a type of bridging loan that can be used by UK property investors and developers to purchase properties at auction.
It works like most other bridging loans in that it’s a short-term loan, from 1 - 24 months typically, that acts like a quick cash injection. The loan is secured against the property, or with additional properties, and repaid by selling or refinancing.
Interest is normally rolled up and paid at the end of the loan term – so the loan usually isn’t serviced on a monthly basis, but you can opt to do this on income producing assets.
Can any bridging finance be used for auction purchases?
While auction finance is a form of bridging loan, not all bridging loan lenders are set up to execute auction transactions. Auction finance lenders complete auction deals day-in and day-out, so have streamlined their processes for maximum efficiency and often offer pre-approval.
Buying a property at auction is not the same as buying via traditional sales and finance processes. Firstly, if you win the bid, contracts exchange on the day of the auction and you must pay a 10% deposit.
Secondly, fixed completion deadlines, normally within 28 days, must be met 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, and many standard bridging lenders can’t either. Hence the need for fast, flexible auction property finance, where typical completion is 14 days and best case can be as little as 3 days.
Working with the right lender is therefore often more important than the loan rates and costs.
| The Borrower |
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| Eligibility |
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| Loan to Value (LTV) |
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| Loan Amount |
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| Loan Term |
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| Arrangement Time |
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| Property Types |
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| Security |
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| Exit Strategy |
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| Interest |
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| Auction Finance Rates |
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| Adverse Credit |
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| Experience |
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| Income |
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*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 6% and 19%.
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 50 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:
- Office
- Retail and supermarket
- Licensed HMO
- Mixed Use (part residential, part commercial)
- Mixed Use (All commercial)
- Hotels
- Restaurants, takeaways restaurants, bars and nightclubs
- Care homes, retirement homes and medical buildings
- Leisure complexes, theme parks and holiday parks (inc. caravan parks)
- Multi-Unit Freehold Block (MUFB)
- Education (inc. schools, pre-schools), Children’s Day Nursery
- Light and Heavy Industrial
- Student (inc. PBSA)
- Airport and transport hubs (inc. railway & bus stations)
- Museums, gyms, equestrian centres, golf course
- Any commercial property not in immediately habitable condition
Similarly to when buying via a traditional agent, certain conditions make it harder to secure finance for an auction property, including:
- Properties with missing legal documentation, restrictive covenants, or legal disputes (e.g., boundary issues)
- Short leaseholds
- Contaminated land
- Flood risk locations
- Presence of Japanese knotweed
However, if the project is viable, and the numbers stack up, there is almost always a solution.
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 exact borrowing costs, you can work backwards to calculate your profit and the maximum price you should pay for the property.
Running your project numbers through Brickflow is the quickest, most accurate way to calculate auction finance costs, and it takes 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 and avoiding delays:
- Prepare your documentation as soon as possible: Including ID, proof of address, your financials and your developer CV if necessary and keep open channels of communication with your bridging loan lender in case further information is required.
- 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
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:
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:
- SEARCH & COMPARE live loans from 50+ bridging lenders, instantly
- Enter the details of your auction purchase-it takes seconds
- Compare and shortlist your preferred loans
- SECURE a same-day DIP (our record is 4 minutes)
- With your broker or a Brickflow partner, submit to multiple lenders directly from the platform, using our digital loan application, cutting out repetitive form-filling and receive multiple DIPs within minutes
- APPLY for a loan
- Choose your preferred loan and apply; our lender-favoured online application covers everything they need to make fast, reliable credit decisions. Your broker will manage your entire application and ensure you're happy with the terms.
Search for your auction finance now and see the great deals available on Brickflow.
What documents do lenders need for auction finance?
- Auction legal pack
- Memorandum of sale from the auction house (details Buyer and seller details
property address, purchase price, deposit paid, completion deadline, any special auction conditions) - Proof of auction deposit paid
- Photo ID and proof of address
- Company documents (if borrowing via an SPV or company)
- Details of the exit strategy (sale or refinance) with supporting evidence
- Source of funds declaration
- Solicitor details and confirmation of instruction
Going direct vs broker vs comparison platform
When buying at auction, the fixed completion deadline means speed, certainty, and lender-fit matter more than ever. There are three common routes to securing auction finance, each with different trade-offs:
Going direct to lenders
Pros: Direct communication, clear accountability and avoids broker fees. Can work well if you already know which lenders fund your type of auction purchase and you’re confident the deal fits their criteria.
Cons: You’re limited to one lender at a time, and comparing options means making multiple separate applications. This is time-consuming post-auction and increases the risk of missing completion if a lender declines late. Also, you’ll rarely uncover the best deal when approaching so few lenders.
Using brokers
Pros: Brokers can access specialist auction lenders that don’t accept direct applications, and know those with appetite and capacity. Also, they manage underwriting, valuation, and legal coordination.
Cons: Results depend on how good your broker is and what market coverage they have. Typically you only see the lenders the broker chooses to approach.
Using comparison platforms
Pros: Comparison platforms allow you to assess hundreds of lenders quickly, compare net loan, fees, and criteria, and avoid unsuitable options. Brickflow’s award-winning platform gives you instant market access to 150+ banks, non-banks and specialist lenders, offering full transparency on the best auction finance.
Cons: There’s no downsides, just full autonomy on your property finance.
Combined with the insights of a specialist broker, you can be absolutely certain you’re getting the best auction finance deal on the market.
I've bought at auction – what happens next?
Deposit paid (day of auction):
After the hammer drops, the sale is final, contracts are exchanged and you pay a 10% deposit, plus any auction house fees. The completion deadline is fixed, typically 28 days. Your solicitor is instructed and your loan application is initiated. Where possible, secure a DIP before the auction.
Legal work progresses (day 0–1):
Your solicitor starts work, reviewing the auction pack and contract documentation. Any title defects, special conditions, or lease issues need to be addressed early to avoid delays.
Valuation instructed (day 1–3):
A desktop or physical valuation is carried out.
Finance application finalised (day 1–3):
The lender completes underwriting, confirms the loan structure, and issues formal terms based on the auction pack and your exit strategy.
Legals and drawdown (day 3–14):
Once valuation and legal checks are satisfied, funds are released and completion takes place — before the auction deadline to avoid penalties or loss of deposit.
These are a guide to how an auction purchase might progress, but bear in mind that, even in bridging finance, delays happen and timeliness can slip. Some of the most common causes of delay include valuation access, non-standard property issues, legal title issues, lender due diligence and solicitor readiness to name a few.
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.