Auction Bridging Finance

Auction Bridging Finance

Fast, flexible funding to secure your auction property, even on the tightest timeline.
Last updated: October 2025

What Is Auction Bridging Finance?

Auction bridging loans provide the short-term funding you need to complete a property purchase within the typical auction timescale.

When your bid wins, you exchange contracts immediately and pay a deposit on the spot, usually 10% of the property price. The balance must then be completed within a fixed period.

Auction properties are rarely mortgageable straight away. Many require refurbishment bridging finance, have short leases, or lack the documentation that mainstream lenders demand. Bridging finance offers a fast, effective way to fund auction deals, allowing you to move quickly while planning your exit through refinance or sale.

Traditional mortgages rarely move that fast, but bridging finance can. Our team arranges fast, flexible funding so you can complete your auction purchase without delays or stress.

Types of Auction Completions

Not every auction follows the same completion timeframe. The type of auction you buy through determines how quickly you need to secure finance.

1. Traditional Auctions (28-Day Completion)
   The classic auction setup. You exchange contracts and pay your 10% deposit as soon as the hammer falls, with just 28 days to complete. Bridging finance is essential here because traditional mortgages simply can’t complete this quickly.
2. Modern Method of Auction (56-Day Completion)
   Also known as conditional or online auctions, these give you a bit more breathing room. Exchange happens later, and you typically have 56 days to complete. Bridging finance still fits perfectly, offering flexibility while you arrange your refinance or prepare the property for letting or sale.
3. Extended or Conditional Completions
   Some auctions, particularly for property development or commercial lots, allow up to 8–12 weeks to complete. Even with longer timelines, bridging can still be valuable for flexibility, speed, or securing funding before resale or refurbishment.
4. Delayed or Bespoke Completions
   Occasionally, sellers or receivers agree to custom completion terms. These require careful coordination to ensure your funding aligns with the legal contract dates. We’ll liaise directly with your solicitor and the lender to keep everything watertight.

Buying After the Auction

Not every property sells under the hammer. Many are listed as “unsold” and remain available to buy in the days or weeks that follow.

This is often called a post-auction purchase, and it can be an excellent opportunity for buyers to negotiate a better deal. However, even though the auction has ended, sellers will usually still expect a fast completion, often within the same 28-day timeframe.

Bridging finance is ideal for post-auction purchases because it provides the same speed and flexibility as it does for in-auction buys. It allows you to move quickly while arranging long-term finance, carrying out essential works, or preparing the property for refinance or sale.

Who Uses Auction Bridging Loans?

Auction Bridging is ideal for:
• Investors purchasing to refurbish or flip properties
• Landlords expanding or refinancing their portfolios
• Developers buying un-mortgageable or distressed stock
• Buyers who need rapid completion without long-term borrowing

Key Features and Benefits

• Speed: Funding available in as little as 5 to 10 days
  • Flexibility: Borrow against residential, mixed-use, or commercial properties
  • Short-Term Terms: 1 to 12 months, with early repayment options
  • Exit Strategy: Refinance to a mortgage or sell the property
  • Expert Support: We handle the full process from auction room to completion

Costs and Considerations

• Rates: From around 0.45% per month, depending on the property, loan size, and borrower profile. We work with a wide panel of lenders, including some offering exclusive terms not available direct to the public.
  • Fees: Usually from 2%, 
  • Valuation and Legal Costs: These vary by property type but can often be streamlined using indemnified searches or dual representation solicitors.
  • Risk: If you fail to complete, you could lose your 10% deposit and incur additional charges. Always ensure timelines are realistic before bidding.
  • Speed: Funding can be completed in as little as 5 to 10 days, depending on the lender and legal process.

Top Tips for Buying at Auction

1. Get a Decision in Principle before bidding. We can provide same-day approvals.
2. Have your solicitor and surveyor ready before auction day.
3. Review the legal pack carefully before bidding.
4. Always factor your finance costs into your maximum bid limit.

Frequently Asked Questions

Can I apply before the auction?
Yes. Pre-approval gives you the confidence to bid, knowing your finance is ready to go.

What happens if my bid fails?
Your approved facility can often be transferred to another property, subject to valuation.

Can I refinance to a mortgage later?
Absolutely. Most clients exit through a buy-to-let mortgage or development mortgage once works are complete.

What loan-to-value (LTV) can I expect?
Typically up to 75%, with higher options available for higher LTV or lower-risk projects.

Do I pay interest monthly or at the end of the term?
You can choose either retained interest (deducted upfront) or monthly payments, depending on the lender.

Case Study: Completing an Auction Purchase in 8 Days

An experienced investor recently won a large Victorian house at auction. The property had strong potential but needed modernisation, which made it unsuitable for a traditional mortgage. The buyer needed fast, flexible finance to meet the 28-day completion deadline.

Our team arranged a bridging facility within just eight days, using a product designed for properties that required light refurbishment. Having a proactive solicitor and the paperwork ready from the start helped the process run smoothly and kept everything on track. By combining a streamlined valuation process with clear communication between all parties, the deal completed without delays or surprises.

The client completed on time, carried out the works, and later refinanced onto a competitive buy-to-let mortgage once the property was in good condition.

Outcome: A fast, well-organised completion, a profitable refurbishment, and a strong long-term investment achieved through smart preparation and expert guidance from GPS Financial.

Why Choose GPS Financial

• Over a decade of experience in property finance
  • Access to leading UK auction and bridging lenders
  • Transparent, ethical advice from regulated experts
  • Fast, personal service from a dedicated broker
  • Authorised and regulated by the Financial Conduct Authority (FCA 975825)

Content reviewed by Morgan Stewart, Director

📞 Call 029 2267 7707 or contact us for a free, no-obligation chat.