If you have found a house at a property auction but need time to get a mortgage, a bridging loan could be the answer. Compare auction finance deals so you can get a low interest rate on the funds you need.
Looking through a range of options gives you more chance of securing a great deal. You'll only find results from genuine companies. Our data experts check each company before we add them to our comparisons.
1
About your home
Tell us about your property – the type of building, the address and your postcode.
2
A bit about what you need
Tell us how much you want to borrow and for how long, we’ll show you loans you’re eligible for.
3
View your options
Once you’ve decided on a loan you can make your full application adding your name and email address.
Think carefully before securing other debts against your home. You home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.
| Available On Properties In England | |
| Available On Properties In Wales | |
| Minimum Loan | £75,000 |
| Maximum Loan | £2,500,000 |
| Minimum Property Value | £100,000 |
| UK Residents |
| Available On Properties In England | |
| Available On Properties In Scotland | |
| Available On Properties In Wales | |
| Minimum Loan | £50,000 |
| Maximum Loan | £25,000,000 |
| Minimum Property Value | £200,000 |
| UK Residents |
| Available On Properties In England | |
| Available On Properties In Scotland | |
| Available On Properties In Wales | |
| Minimum Loan | £125,000 |
| Maximum Loan | £25,000,000 |
| Minimum Property Value | £150,000 |
| UK Residents |
| Available On Properties In England | |
| Available On Properties In Scotland | |
| Available On Properties In Wales | |
| Minimum Loan | £50,000 |
| Maximum Loan | £1,000,000 |
| Minimum Property Value | £100,000 |
| UK Residents |
| Available On Properties In England | |
| Available On Properties In Scotland | |
| Available On Properties In Wales | |
| Minimum Loan | £75,000 |
| Maximum Loan | £15,000,000 |
| Minimum Property Value | £100,000 |
| UK Residents |
| Available On Properties In England | |
| Available On Properties In Wales | |
| Minimum Loan | £50,000 |
| Maximum Loan | £1,500,000 |
| Minimum Property Value | £150,000 |
| UK Residents |
| Available On Properties In England | |
| Available On Properties In Scotland | |
| Available On Properties In Wales | |
| Minimum Loan | £50,000 |
| Maximum Loan | £5,000,000 |
| Minimum Property Value | £50,000 |
| UK Residents |
| Available On Properties In England | |
| Available On Properties In Wales | |
| Minimum Loan | £50,000 |
| Maximum Loan | £5,000,000 |
| Minimum Property Value | £200,000 |
| UK Residents |
| Available On Properties In England | |
| Available On Properties In Wales | |
| Minimum Loan | £100,000 |
| Maximum Loan | £4,000,000 |
| UK Residents |
| Available On Properties In England | |
| Available On Properties In Scotland | |
| Available On Properties In Wales | |
| Minimum Loan | £75,000 |
| Maximum Loan | £3,000,000 |
| Minimum Property Value | £50,000 |
| UK Residents |
| Based on borrowing | £158,000 over 1 year | The overall cost of comparison | 11.6% APRC representative |
|---|---|---|---|
| Interest rate | 8.30% fixed for 1 year (12 instalments of £1,127.75 pm) | Broker fee | £995 |
| Lender fee | £3185 | Total amount payable | £171,533.00 inc. interest of £13,533.00 |
Making big purchases at an auction presents one major problem: you don’t know how much you’re going to pay.
This means you need your finances to be as flexible as possible to be able to complete the deal. To get that right, you need to understand the auction process and arrange both primary and contingency finance.
There are a few things you need to consider money-wise. For example, you are required to pay a deposit (usually 10%) on the day, and in most cases, you need to pay the remaining balance within 28 days. Fast access to finance is essential.
An in-principle mortgage is essential before you go to an auction. Base the mortgage around your budget, choosing a maximum of 90% loan-to-value (LTV) ratio, based on a 10% auction house deposit.
A mortgage is almost always the cheapest option, so getting the right deal at the start can save you time, money and stress further down the line.
Unfortunately, if you blow your budget or don’t get a mortgage approved in time, you may not be able to cover your auction purchase. The risk is that you could then lose both the 10% deposit and the property; this is where auction bridging finance can help as a contingency measure.
A bridging loan for auction property can extend the money you need at short notice, giving you time to secure a mortgage (which should always be your main option).
This quick set-up means they are also an option, albeit an expensive one, if you don’t have time to arrange an in-principle mortgage beforehand.
Property auction finance is secured on an asset of your choice – usually, that is the property you’re buying. It lasts for a maximum of two years and charges monthly interest rates up to 1.6%.
Bridging loan lenders appraise your loan and its security before setting their interest rates. This means that property auction bridging loans charge valuation, arrangement and admin fees on top of monthly interest.
These set-up fees are as important to consider as the interest rates because an auction bridging loan is such a short-term measure. Make sure you compare rates and fees to get the cheapest deal.
Auction loan financing means taking out a second mortgage-sized debt. You need to satisfy your mortgage provider that you can afford the repayments on both debts.
The aim should be to complete your auction purchase using the bridging loan, then pay it back immediately and in full upon receipt of your renegotiated mortgage.
Refinancing a bridging loan is very expensive, and defaulting on its payment could see you lose the security. Make sure you’ve considered all the financial implications and check the cost of your required loan on our auction bridging loans table before finalising your deal.
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Read MoreComparing loans could help you save money. Our award-winning loan comparison service makes sure you get our best interest rates. Our aim is to provide you with the most up-to-date information, as well as useful tools and calculators so to help you make life's most important decisions and take control of your money.
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Last updated: 5 April, 2022
