Auction Bridging Loans
Secure Property in 28 Days
Fast, flexible finance designed for auction buyers.
Get funding in days, not weeks, and complete on time with confidence.
Buying at Auction – the Challenge
Buying a property at auction can unlock incredible opportunities — but it comes with pressure.
When the hammer falls, you’ll need to pay a 10% deposit immediately and complete within just 28 days. Traditional mortgages are often too slow, leaving many buyers at risk of losing their deposit or missing out on the deal entirely.
That’s where auction bridging finance comes in.
What is Auction Bridging Finance?
Auction bridging loans are short-term finance solutions designed to help you complete a property purchase quickly.
They are built for speed and flexibility, allowing you to secure auction properties within tight deadlines — even if the property is unmortgageable or needs refurbishment.
With the right lender, funds can often be arranged in a matter of days.
How Auction Bridging Works
Step 1: Get Pre-Approved
Speak to a specialist before the auction so you know exactly how much you can borrow.
Step 2: Win the Auction
Once your bid is successful, you’ll pay the 10% deposit on the day.
Step 3: Finance Arranged Quickly
Your bridging loan is processed and approved rapidly, with valuations and legal work prioritised.
Step 4: Complete Within 28 Days
Funds are released in time to meet the auction deadline.
Step 5: Exit the Loan
Repay the loan through a refinance, sale, or longer-term mortgage.
Key Features
Loans from £50,000 to £X million
Up to 75–85% loan-to-value (LTV)
Rates from around 0.5% per month
Terms typically 1–24 months
Funds available in days
Who is this for?
Auction bridging loans are commonly used by:
Property investors
Landlords expanding their portfolio
Developers purchasing refurbishment projects
Buyers securing below-market-value deals
First-time auction buyers needing speed and certainty
Common Uses
Buying below market value properties
Purchasing unmortgageable homes
Funding refurbishment projects
Securing auction opportunities quickly
Breaking property chains
Costs & Fees
Bridging loans are designed for short-term use and are priced accordingly.
Typical costs include:
Monthly interest (often from ~0.4%–0.8%)
Arrangement fees (usually 1–2%)
Valuation and legal fees
Broker fees (if applicable)
In many cases, interest can be rolled into the loan, reducing upfront costs.
Auction Finance Case Study
Auction Purchase – £220,000 Property
A client secured a below-market-value property at auction for £220,000.
Deposit: £22,000 paid on the day
Bridging loan arranged within 10 days
Full completion achieved within deadline
Exit via refinance onto a buy-to-let mortgage
Result: Property secured below market value with minimal delay.
Ready to Secure your Auction Property?
Bright Money makes securing your auction property bridging finance simple, quick, compliant, and cost-effective.
You’ll get expert advice, no jargon, and support every step of the way.
Call us: 01844 390910
Email us: info@bmimoney.co.uk
Or use the form below and we'll be in touch.
FAQs
about
Auction
Bridging
Finance
Can I get bridging finance before the auction?
Yes. Many lenders offer pre-approval so you can bid with confidence, knowing your funding is in place.
How quickly can I get an auction bridging loan?
In many cases, funds can be arranged within a few days, depending on the complexity of the deal.
How much deposit do I need?
In many cases, funds can be arranged within a few days, depending on the complexity of the deal.
Can I buy an unmortgageable property?
Yes. Bridging loans are often used for properties that are not suitable for traditional mortgages.
What happens if I miss the 28-day deadline?
You risk losing your deposit and potentially facing legal penalties. That’s why fast, reliable finance is essential.
Can I repay the loan early?
Yes. Many bridging loans are flexible and allow early repayment, often without significant penalties.
