Compare property auction bridging finance

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.

Compare property auction bridging finance from leading providers

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.

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How to compare property auction bridging finance

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.

Property auction bridging finance deals

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.

25 results found, sorted by lowest monthly interest rate. How we order our comparisons.
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United Trust Bank Bridging Loan
Maximum LTV
1st charge: 75% & 2nd charge: 70%
Loan term
1 month to 3 years
Loan amount
£125,000 to £25,000,000
Monthly interest rate
0.48% to 1.1%
United Trust Bank Bridging Loan
You will need to pay a 2% arrangement fee when you take out this bridging loan.
This loan is regulated.
Eligibility
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

Representative example for regulated bridging loans

Based on borrowing£158,000 over 1 yearThe overall cost of comparison11.6% APRC representative
Interest rate8.30% fixed for 1 year (12 instalments of £1,127.75 pm)Broker fee£995
Lender fee£3185Total amount payable £171,533.00 inc. interest of £13,533.00

Compare another type of bridging loans

What is an auction house loan?

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.

Understanding auctions

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.

How to arrange your auction bridging finance

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.

Things to consider

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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Last updated: 5 April, 2022