Auction Property Mortgages
Auction property finance - bridging loans for the standard 28-day auction completion deadline, longer-term mortgages for conditional auction purchases, and specialist lenders for properties that cannot be mortgaged at the point of auction.
Two types of auction - very different finance needs
Traditional auction and modern method of auction (MMA) have different completion timelines that require different finance strategies. Traditional auction requires completion within 28 days - typically too fast for a mortgage. MMA allows 28 days to exchange and then 28 to 56 days to complete - potentially achievable with a mortgage if started immediately. In both cases, bridging finance is often faster, more certain, and the appropriate tool.
Every auction finance requirement placed
Traditional Auction - Bridging Finance
The 28-day completion deadline from traditional auction hammer fall is typically too short for a standard mortgage application. Bridging finance - arranged in advance of the auction - is the standard solution, completing within 7 to 14 days of hammer fall.
Modern Method of Auction (MMA)
MMA gives 28 days to exchange contracts and then 28 to 56 days to complete. A mortgage application started immediately after the reservation is theoretically achievable - but bridging is faster and more certain. We compare both options.
Pre-Auction Bridging Arrangement
Bridging finance arranged in advance of the auction removes the time pressure from the funding decision. We arrange a pre-approved bridging facility before auction day so the buyer can bid with confidence.
Uninhabitable Properties
Many auction properties are uninhabitable at the point of purchase - which prevents standard mortgage lending. Bridging finance covers the purchase and works period, with the exit to a standard mortgage once the property is habitable.
Post-Auction Mortgage - Conditional Sale
MMA purchases that complete within the mortgage application timeline can exit directly to a standard residential or BTL mortgage. We identify the specialist lenders most efficient for this timeline and manage the application from day one.
Long-Term Finance on Completion
Whether the exit from the bridge is a standard residential mortgage, a BTL mortgage, or a sale, we arrange the exit finance at the same time as the bridging loan - ensuring the exit route is viable before the property is purchased.
How it works
Pre-auction preparation
Before the auction: we arrange a bridging finance pre-approval and identify the exit mortgage or sale plan. This allows bidding with confidence rather than arranging finance under time pressure after the hammer falls.
Post-hammer funding
After a successful bid: bridging funds are drawn within 7 to 14 days of the auction date. We manage the valuation and legal process simultaneously to hit the completion deadline.
Exit finance arrangement
The exit mortgage application is submitted immediately after the bridging facility is drawn. We manage both the bridge and the exit mortgage simultaneously to minimise the bridging period.
Completion and exit
On the exit mortgage offer, the bridge is repaid in full. Total bridging period: typically 4 to 8 weeks for standard auction properties. Uninhabitable properties with a renovation period run longer.
Buying or planning to buy at auction?
Tell us the property, auction type, and timeline. We arrange pre-auction bridging and exit finance simultaneously - same working day response.
Frequently asked questions
Can I get a mortgage for a property purchased at auction?
Yes - for MMA purchases where the completion timeline allows. For traditional auction with 28-day completion, bridging finance is typically faster and more certain than a standard mortgage.
What is the difference between traditional auction and modern method?
Traditional auction requires completion within 28 days of the hammer falling. MMA requires exchange of contracts within 28 days and completion within a further 28 to 56 days. MMA timelines are more compatible with mortgage finance, though bridging is still often used.
How quickly can bridging finance be arranged for an auction property?
Bridging arranged in advance of the auction is available for drawdown within 7 to 14 days of the hammer falling. Pre-arranged bridging is significantly faster than post-auction arrangement and removes the risk of missing the deadline.
What if the property is uninhabitable?
Uninhabitable auction properties cannot be mortgaged at the point of purchase. Bridging finance covers the purchase and renovation period. Once the property is habitable and mortgageable, the bridge exits to a standard mortgage.
How do I arrange finance before the auction if I don't know if I'll win?
Pre-arranged bridging facilities are arranged as indicative or agreed-in-principle facilities that can be drawn immediately on a successful auction bid. There is no cost if the bid is unsuccessful. We arrange these before auction day.