Auction finance for companies
Win the lot, then complete on time. How companies and SPVs use bridging finance to meet the auction deadline.
Buy a property at auction and the clock starts the moment the hammer falls. Contracts exchange there and then, and completion is usually due within 28 days — sometimes less. A term lender rarely moves at that speed, which is why bridging finance is the standard way to fund an auction purchase.
Why the deadline matters
The 28-day problem
At auction you exchange on the fall of the hammer and pay a deposit, typically 10%. The balance falls due on completion, commonly 28 days later. Miss it and you risk losing the deposit and facing further liability under the contract.
Auction lots are also often the kind of property a mainstream lender is slow or unwilling to fund — an unmodernised unit, a mixed-use building, a commercial asset or something needing works. Bridging finance is built for exactly this: quick, secured against the property, and repaid from a defined exit.
How we fund it
A direct decision, made to the timetable
Because we lend our own capital, the decision is made directly by the people providing it — there is no credit committee and no external funding line to satisfy. That is what lets a bridge complete quickly, typically around five working days once we have what we need.
Ideally we speak to you before the auction, so terms are agreed and the legals are underway before you bid. That turns the 28-day deadline from a risk into a formality.
The terms
Indicative terms
The terms below are a guide. Every transaction is assessed individually, and final terms depend on the opportunity, security and status.
- Loan size — £150k–£2m
- Maximum LTV — 80%
- Term — 3–12 months
- Rate — 1% per month
- Facility fee — 2%
- Exit fee — none
- Security — first charge
- Completion — typically 5 working days
See the full lending criteria, or how company bridging works.
Getting ready to bid
Line up finance before the hammer
The borrowers who complete auction purchases smoothly do the groundwork first. Before you bid, it helps to have:
- The lot number, the legal pack and the guide price
- Your company or SPV details and the people behind it
- A clear exit — sale, refinance onto a term facility, or completion of works and letting
- An idea of the maximum you will bid, so the loan can be sized
Give us the lot and your plan and we will tell you quickly whether it is something we can fund, and on what terms.
Get started
Bidding at auction?
Get terms agreed before the hammer falls. Speak directly with the people making the lending decision.