Win at Auction With Bridging Finance Near London
- Adverse credit considered
- Residential and commercial properties
- No upfront or early exit fees
- Quick to secure funds
At the fall of the hammer at a property auction, the clock starts immediately. Most auction houses require a 10% deposit on the day, with the remaining balance due within 28 days. A standard mortgage cannot move that fast. An auction finance bridging loan steps in to cover the purchase within that tight window, giving you time to arrange longer-term funding or sell the property on. PropertyFinanceCompare connects buyers near London with specialist lenders who are set up to fund auction purchases quickly and without unnecessary hurdles.
We hold authorisation from the Financial Conduct Authority as a regulated credit broker. Our job is to match your auction purchase to the right short-term lender, not to sell you a product off a shelf. London auction finance requirements vary widely, from residential houses bought at auction to semi-commercial lots and land. We review the property type, the legal pack, and your exit plan before approaching any lender, so the submission is right from the start.
Why Work With Us?
PropertyFinanaceCompare.com is a team of professional brokers, not lenders. We become a bridge between borrowers and lenders to enter into different types of loan agreements, including both secured and unsecured loan agreements.
Reliable property development loan comparisons that you can trust. It is always nice to know that our clients are on the right track. What makes us different
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FAQs
Are auction finance brokers suitable for first-time buyers?
First-time buyers can and do use auction finance bridging loans. What a lender looks at first is the property itself and how the loan will be repaid, not how many times you have bought before. A solid exit route, whether that is refinancing onto a buy-to-let mortgage after completion or selling the property once light works are done, carries far more weight than your purchase history.
Going through an auction finance broker makes the process easier if you have not done this before. We know the questions lenders will ask about a first-time buyer’s application and we make sure your submission answers them clearly. We also explain each step so you are not left guessing what happens next.
• First-time buyers are considered by specialist auction bridging lenders.
• Your exit plan matters more than your purchase history.
• We walk you through the process and prepare your submission from scratch.
How do auction finance brokers work?
An auction finance broker sits between you and a panel of specialist short-term lenders. Rather than you approaching lenders one by one and hoping for a quick answer, a broker takes your details and the property information, packages it properly, and goes directly to the lenders most likely to approve your case before the 28-day deadline.
At PropertyFinanceCompare, we start with a quick review of the auction legal pack, your proposed exit, and the loan-to-value ratio relative to the purchase price. We then approach the right lenders on your behalf and manage everything through to drawdown. You stay focused on the property while we handle the finance side.
• We review the legal pack and your exit before approaching any lender.
• We go directly to lenders who are currently providing fast auction finance in London and the Home Counties.
• We manage the case through to drawdown within the auction deadline.
Do I need a deposit for an auction finance bridging loan?
Yes. On the day of the auction, you will need to pay a deposit directly to the auction house, which is typically 10% of the winning bid. This is separate from the bridging loan itself. The loan then covers the remaining balance, subject to the lender’s loan-to-value limit and the property valuation outcome.
Most lenders offering auction-finance bridging loans will advance 70% to 75% of the purchase price on a first-charge basis. If you have an additional property to offer as security alongside the auction lot, some lenders will consider a higher advance. We go through your security position with you before the auction, so you know exactly what funding is in place before you bid.
• A 10% deposit is payable to the auction house on the day of a successful bid.
• The bridging loan covers the remaining balance, subject to the lender’s loan-to-value limit.
• Additional security can support a higher advance where needed.
What are the interest rates for auction finance bridging loans?
What are the interest rates for auction finance bridging loans?
Auction bridging loans are priced monthly rather than annually, unlike a mortgage. The rate you are offered depends on the loan-to-value, the property type, your exit strategy, and the lender’s current appetite. Properties with a straightforward exit and a lower loan-to-value generally attract better pricing than complex cases or high-advance facilities.
Because auction finance cases move fast, securing an In-Principle Term Sheet before bidding day is the best way to understand your likely costs. We obtain indicative terms tailored to your project, allowing you to enter the auction room with financial certainty rather than guessing after the fall of the hammer.
• Monthly interest applies rather than an annual rate, as with a standard mortgage.
• Loan-to-value, exit route, and property type all influence the rate offered.
• We secure an In-Principle Term Sheet before auction day so you know your exact funding parameters in advance.
What documents are required to get auction finance in London?
Lenders need to assess the property and your exit quickly, so the documentation requirements for auction finance are more focused than a full development finance application. You will typically need proof of identity, proof of address, the property’s legal pack, and a clear explanation of your exit route. If you are purchasing through a limited company or SPV, the company documents will also be required.
Having these ready before auction day considerably speeds up the legal and valuation processes once you have a winning bid. We tell you exactly what to prepare based on the lender and the property, so nothing is missing when the clock is already running.
• Proof of identity, proof of address, and the auction legal pack are required by most lenders.
• A clear exit strategy must be evidenced before the drawdown is authorised.
• We confirm the full list of documents for your specific case before the auction day.
Why use broker service?
People generally use brokers for two reasons
• The solution to their borrowing requirement is not easy to come by and cannot be sourced through direct channels.
• It is not a good use of their time to try and source it themselves; i.e. their time is worth more to them than the fee they pay to their broker.
• Contact us and we will be happy to help you!
Can you provide us a glance at property auction finance?
Short term finance over 1-12 months
All income types considered
Up to 70% loan to value
Do you charge fees?
There is usually a fee but it depends on the complexity of the case. This is communicated to you at an initial stage.
Who are your clients?
For us discretion is key, so we would never reveal the information of anyone who is a client.
Our client base is broad. Our clients tend to be business owners that wish to work with like-minded, entrepreneurial people. For example, we have dealt with entrepreneurs with a residential house in London, a ski chalet in the Alps, a holiday home in the Balearics or a BTL portfolio in the UK.
How to contact you?
Fill out our contact form, and within 24 hours, our representative will contact you.
