Property Auction Finance

Introduction

Auction finance is built for speed when the hammer falls.

Auction property purchases come with hard deadlines that traditional mortgages simply can’t meet.

Typically a form of bridging, auction finance lets you secure the property first, then refinance or sell when the dust settles.

Compare auction finance below.

How it works

Step 1

Compare

Lift the lid on the latest rates and receive your personalised results in your inbox.

Step 2

Optimise

Our free Optimiser gets lenders competing for your business and guarantees a bespoke quote within 1 day!

Step 3

Apply

Time to get your deal done with the help of our property experts.

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I had such a positive experience working with Abbie, Keira and Jordan. They managed to get my bridging loan application approved and funds released in just 4 days, which honestly made all the difference as I was completing on an auction property. They were incredibly responsive throughout — always quick to reply, keeping me updated, and making what has been a hectic process feel much more calm and manageable. What I appreciated most was how genuinely helpful they were, taking the time to guide me through each step and making sure I felt confident along the way. I’m really grateful for their support and wouldn’t hesitate to recommend them to anyone needing fast and reliable bridging finance!

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Auction Finance FAQs

Buying a property at auction? You need finance that can keep up.

Auction finance is a short-term funding solution used to help buyers complete property purchases within tight auction deadlines.

It's often a form of bridging finance, secured against the property you're buying.

The idea is simple:

Buy the property → complete quickly → refinance or sell → repay the loan.

Auction finance can be particularly useful for properties that need refurbishment or don't meet standard mortgage criteria.

Speed is the big one. Once the hammer falls, you're legally committed to the purchase and usually have a limited window to complete.

Why use auction finance?

Because sometimes a normal mortgage just isn't fast enough.

Auction purchases typically come with strict completion deadlines, often around 28 days.

A traditional mortgage can take longer than that, particularly if the property needs significant work.

Auction finance can help you:

  • Complete within the auction deadline

  • Buy properties that need refurbishment

  • Keep more of your own cash available

  • Move quickly when an opportunity comes up

It can also provide more flexibility than a traditional mortgage when the property isn't currently in a mortgageable condition.

Our deal optimiser service will help negotiate interest rates and terms with potential lenders. The rates shown on our site are the indicative rate ranges that auction finance lenders give out. However, we are able to work with investors to professionally present their project to lenders with the aim of negotiating the best possible deal.

Row of properties on road Curved row of terraced houses on a main roadway with a bus shelter infront.

Can you get a mortgage on an auction property?

Yes — but it depends on the property.

If the property is in good condition and meets standard lending criteria, a traditional mortgage may be possible.

The problem comes when the property needs significant work.

Structural changes, planning requirements, missing kitchens or bathrooms and other issues can affect whether a mainstream lender will lend.

That's where auction finance or bridging finance can become useful.

Once the property has been improved, you may then be able to refinance onto a longer-term mortgage.

The important thing is to understand what the property is worth now, what the works will cost and what it should be worth afterwards.

How much can I borrow with auction finance?

It depends on the deal.

Propp's lender panel offers auction finance from around £50,000 up to £15 million, depending on the lender and circumstances.

For investment property, lenders will typically look closely at:

  • The property

  • Your deposit

  • The overall project

  • Your experience

  • Your exit strategy

A larger deposit can sometimes mean a more competitive rate and greater lender flexibility.

Some lenders may also consider additional security, potentially allowing investors to raise more against other property they own.

Don't just ask “how much can I borrow?”

Ask “how much can I borrow and does the deal still stack up?”

The amount of experience a property investor has will also help determine how competitive the interest rate is that we are trying to negotiate.

How much does auction finance cost?

Auction finance usually costs more than a long-term mortgage. That's because it's short-term specialist finance designed to move quickly and accommodate properties or situations that don't fit standard lending.

Costs can include:

  • Interest

  • Arrangement fee

  • Broker fee

  • Valuation fee

  • Legal fees

  • Exit fee, where applicable

Don't focus on the headline interest rate alone.

The total cost of the finance is what matters.

This is also a perfect place for your comparison tool to sit immediately underneath.

Want to see what auction finance could cost? Compare your options with Propp.

How quickly can auction finance be arranged?

Potentially quickly — but don't leave it until the last minute.

Auction finance is designed for situations where speed matters, and some bridging loans can complete much faster than a traditional mortgage.

However, every deal is different. Valuations, legal work, property complexity and lender requirements can all affect how quickly the finance can be arranged.

The best time to start sorting your finance? Before you start bidding.

What deposit do I need for auction finance?

As a rough guide, you'll often need around 25% of the purchase price as a deposit.

However, this can vary depending on the lender, the property and the overall deal. Some lenders may offer higher loan-to-value options, while more complex properties or projects could require you to put more money in.

You'll also need to budget for things like:

  • Stamp Duty

  • Legal fees

  • Valuation fees

  • Auction fees

  • Refurbishment costs

  • A contingency fund

Winning the auction is only the first cost.

Am I eligible for auction finance?

Possibly. And being a first-time investor doesn't automatically mean no.

Lenders will typically look at:

  • Exit strategy – how will you repay the loan?

  • Deposit – how much are you putting in?

  • Credit history – does anything affect your ability to exit?

  • Property experience – have you completed similar projects before?

  • The property itself – does it fit the lender's criteria?

Experience can help, but it isn't necessarily essential.

The important thing is being able to demonstrate that the deal makes sense and the loan can be repaid.

How does auction finance work?

One of the most complicated areas is how auction finance works. That’s why we are here to help cut through the financial jargon and take a look at how auction finance works.

Auction finance is like mortgage lending in some ways, but completely different in others! Here are some of the key points:

  • Auction finance lenders will want you to have an exit strategy.

  • You will usually have to put down a deposit of 10% - 35% of the auction property price. For higher risk property you can expect this to be higher, up to 50%.

  • Auction finance rates are higher than mortgage rates.

  • Some lenders will let you use other property or asset as security.

  • Auction finance is short term – typically 1-24 months.

  • Your income and the property value are less important to the lender… it’s all about that exit plan!

  • Speed is key – you normally get the funds to repay within 14 days.

Low shot of tall office building with blue sky backdrop

What happens if you buy at auction and can't get finance

This is where things can get expensive.

You know that old saying “You should never take a risk without doing your due diligence first”? Well, we’re going to add a little twist to that: “And you should never take a risk without having your auction finance in place!”

Once the hammer falls, you're typically legally committed to the purchase.

If your finance isn't ready, you could face:

  • Losing your deposit

  • Interest or other charges

  • Legal costs

  • Further financial consequences depending on the auction contract

Don't bid first and figure out the finance later.

Get your finance strategy sorted before auction day.

Can you buy an auction property before the auction?

Yes. Sometimes.

It's known as a pre-auction offer.

You can make an offer before the auction starts, although the seller and auction house need to agree to it.

If accepted, the purchase will generally still proceed under the auction's conditions.

That means you'll still need to be ready to move quickly.

Before making an offer, make sure you've:

  • Set your maximum price

  • Reviewed the legal pack

  • Viewed the property

  • Checked the valuation

  • Understood the refurbishment costs

  • Got your finance in place

  • Checked the auction conditions