How fast can I get auction finance in the UK?

Bridging lenders can issue a decision in principle within 24 hours and complete in 7–14 days if title, valuation and ID checks are clean. Specialist auction mortgage products typically need 21–28 days, which is feasible for a standard 28-day auction completion if you start before bidding.

What does bridging finance actually cost?

Expect 0.55–1.20% per month interest (typically rolled up, not paid monthly), a 1.5–2% arrangement fee, valuation fee (£500–£2,000+), legal fees on both sides (£1,500–£3,000), and sometimes an exit fee of 1%. On £200,000 borrowed for 9 months at 0.85%/mo, the all-in cost is roughly £19,000–£22,000.

Do I need a deposit for auction bridging?

Yes. Most UK bridging lenders cap loan-to-value at 70–75% of purchase price (sometimes 65% on unmortgageable stock), so you need 25–35% deposit in cash. Lenders that 'lend 100%' usually take a charge over another property you already own as additional security.

Can I get a regular mortgage on an auction property?

Sometimes. If the property is in mortgageable condition (watertight, working kitchen and bathroom, standard construction), a specialist auction mortgage from Together, Precise, LendInvest, Aldermore or similar can complete in 28 days. High-street lenders rarely fit auction timelines.

What's the difference between bridging and development finance?

Bridging covers purchase and light works. Development finance covers heavier refurbishment or new build — it's released in tranches against quantity-surveyor sign-offs, costs more in fees, and is appropriate when works exceed roughly 15–20% of purchase price or require structural change.

Published 2026-06-16 · Updated 2026-06-16 · By BelowHammer

UK auction finance explained (2026 guide)

Auction completion is normally 28 days from the fall of the hammer for traditional lots, with a 10% deposit on the day. High-street mortgages don't move that fast. The three realistic funding routes — bridging, auction-specialist mortgages and development finance — each have a place. Picking the wrong one is the most common reason buyers either pay too much or lose their deposit.

Cash: the benchmark

Cash buyers complete fastest and bid with a clear cost base. If you have the funds, model your maximum bid against cash and use the other routes only when they add returns net of all fees. Most bridging and auction mortgage products effectively add 4–8% to your purchase price across a 6–12 month hold.

Bridging finance: the auction workhorse

A bridging loan is short-term, secured against the property (and sometimes other assets), designed to be repaid within 12–18 months either through refinance onto a longer-term mortgage or by sale of the property. Key parameters in 2026: rates 0.55–1.20% per month (rolled up rather than serviced monthly), LTV up to 70–75% of purchase, arrangement fees 1.5–2%, exit fees up to 1%, completion in 7–14 days. Use it when the property needs work to become mortgageable, when you need to complete inside 28 days, or when you're flipping rather than holding.

Auction-specialist mortgages

A handful of lenders — Together, Precise, LendInvest, Aldermore, Norton Home Loans — underwrite to a 28-day timeline. You need a decision in principle and a valuation booked before the auction. Rates are higher than mainstream BTL or residential products (typically +0.5–1.5%), but materially cheaper than bridging if you'll hold the asset for years. Only viable on properties already in lettable condition.

Development finance

For lots requiring heavy refurbishment, structural change, conversion or new build, development finance funds purchase plus works in tranches released against QS sign-offs. It's more expensive than bridging in headline rate but appropriate where the bridge alone won't cover the build cost. Lenders usually require evidence of similar projects, a detailed schedule of works and a viable exit (sale or refinance).

Decision framework

Mortgageable, hold long-term: auction-specialist mortgage.
Needs light works (£0–£25k), refinance later: bridging + planned refinance.
Heavy refurb or conversion: development finance.
Flip inside 6 months: bridging, priced on a worst-case 9-month hold.
Unmortgageable, hold to refurb: bridging, exit via refinance once works push EPC to C and a valuation supports the loan.

Cost worked example

£200,000 hammer, £5,000 buyer's premium, £10,000 SDLT (BTL surcharge), £2,000 legal. Bridging at 70% LTV = £140,000 borrowed. Arrangement fee 2% = £2,800 added to loan. 9 months at 0.85%/mo rolled up = £10,710 interest. Exit fee 1% = £1,400. Total finance cost ≈ £14,910 on top of purchase costs. Refinance onto a BTL mortgage in month 9, repay bridge.