Auction finance
You've won the lot. The clock starts now.
On the fall of the hammer, you have exchanged contracts and paid your deposit, leaving you with a limited timeframe to complete the purchase. With completion often required within 28 days, securing finance quickly is essential. Auction finance provides short-term funding to help you complete the purchase on time, whether you are buying a residential or commercial property, before refinancing onto a longer-term mortgage or other finance.
Get a decision in principle
Tell us the lot and we'll come back fast, so you can bid with confidence.
That's the job of auction finance: money that moves at the speed of the room.
We lend directly. No broker in the middle, no packaging your case out to a panel, you deal with the people who make the decision.
What is auction finance?
Auction finance is short-term lending built for one purpose: completing a property bought at auction before the deadline runs out.
It's a type of auction bridging loan, a loan secured against the property you're buying (or another property you own), designed to be repaid within months rather than years.
The question is not whether you can raise the money. The question is whether you can raise it in time.
A standard mortgage can't. Auction bridging finance can.
Why a bridging loan, and not a mortgage
A mortgage and an auction bridging loan do different jobs. Treating them as interchangeable is where auction buyers come unstuck.
A residential mortgage typically takes six to eight weeks to arrange and requires the property to be in habitable condition, a working kitchen and bathroom, sound structure, the lot. Plenty of auction stock fails that test on day one. And six to eight weeks doesn't fit inside 28 days.
An auction bridging loan is priced and structured for speed. It doesn't require the property to be mortgageable today. It completes inside the deadline.
You then repay it with your exit, either by selling the property on, or by refinancing onto longer-term borrowing once the property qualifies for it.
More on exits below. It's the most important part of the deal.
What you can buy
Our auction finance can be secured against a wide range of property, including the ones high-street lenders shy away from:
- Residential investments, including HMOs and multi-lets
- Semi-commercial and mixed-use property
- Commercial property, as an investment or owner-occupied
- Land, with or without planning
- Non-standard and "unmortgageable" stock, ex-council, high-rise, non-standard construction, or properties with no working kitchen or bathroom
If it's turned up in an auction catalogue, there's a good chance we've lent against something like it before. Being told a property is "unmortgageable" is often exactly why auction finance exists.
Available to individuals, partnerships, and limited companies (including SPVs).
How much you can borrow
We lend up to 75% of the property's value on standard residential security, the loan-to-value, or LTV. LTV is simply the size of the loan set against what the property is worth: borrow £150,000 against a £200,000 property and your LTV is 75%.
- Standard residential: up to 75% LTV
- With a refurbishment plan or additional security: higher LTVs may be possible
- Commercial and semi-commercial: typically up to 65-70% LTV, reflecting the smaller pool of buyers if the property ever had to be sold
- One point that trips people up: the 10% you pay on auction day is part of the purchase price, not the deposit for your loan. You'll still need to fund the gap between your borrowing and the price yourself.
Auction finance rates
Auction finance rates are quoted per month, not per year, because these are short-term loans.
As a guide to the current market in 2026:
- From around 0.55% per month for prime cases, low LTV, clean credit, a clear exit
- 0.65%-0.95% per month for most standard residential deals
- Higher again for commercial property and heavier refurbishment work
What moves your rate:
- LTV: The biggest single driver. The lower your LTV, the sharper the rate.
- Property type: Standard residential prices best; commercial, land, and unusual construction carry a premium.
- Your exit: A clear, evidenced exit reassures a lender and is rewarded in the pricing.
- Speed: Need funds in days rather than weeks? Expect to pay for it.
Alongside interest, budget for an arrangement (product) fee, usually 1-2% of the loan, plus a valuation fee and legal costs. Compare the total cost of a deal, not the headline rate alone.
Rates shown are indicative, correct as of 2026, and subject to change. Your actual rate depends on the specifics of your case.
How the interest is charged
You'll usually have three ways to handle interest:
- Serviced: You pay the interest monthly. The balance stays flat and the total cost is lowest. Works well when the property produces income.
- Rolled-up: The interest accumulates and is repaid in full at the end, alongside the loan. Nothing to pay month to month.
- Retained: The interest for the term is deducted from the loan at the outset, so it's covered from day one.
How fast is auction finance, really?
Some lenders advertise auction finance completed "in as little as 24 hours."
In almost all cases, that is not realistic, and treating it as the plan is how deposits get lost.
Here's the honest version. A decision in principle can often be issued the same day. But a full completion involves a valuation, legal work, and searches, and that takes time. A realistic completion runs to two to three weeks for a straightforward case.
The point of getting your finance moving early isn't to complete in hours. It's to complete comfortably inside your 28 days, with room to spare if something slips.
Fast is good. Ready is better.
Your exit strategy
Your exit strategy is simply how you'll repay the loan. No lender should give you auction finance without one, and you shouldn't take it without one either.
There are two routes:
- Sell. Buy, refurbish, and sell the property on, a "flip." The sale repays the loan.
- Refinance. Move onto longer-term borrowing once the property qualifies, a buy-to-let mortgage for a residential investment, or a commercial mortgage for commercial and semi-commercial property.
Work out your exit before you bid, not after you've won. If your plan is to refinance, sanity-check that the property will actually meet a term lender's criteria once the works are done.
An auction bridging loan is a tool for a period. It is not a way to hold property for the long term.
What we look at
Because we underwrite in-house, we can take a common-sense view rather than leaning on a credit score alone. We consider:
- The property and its value
- Your LTV and how you're funding the balance
- A clear, credible exit
- Your experience
- First-time investors welcome
- Your wider circumstances, including where credit hasn't been perfect
The auction market in 2026
More stock is reaching the auction room. With the Renters' Rights Act now in force, some landlords are trimming or exiting portfolios, and a share of that property is going straight to auction rather than the open market.
That means more lots, and more competition for the good ones.
It also means having specialist auction finance lined up before the catalogue drops is more of an edge than ever.
Frequently asked questions
Can I finance an auction property purchase?
Yes. You can buy at auction with cash, but if you don't have the full amount ready, auction finance is the usual route. It's a short-term loan secured against the property, arranged quickly enough to complete inside the standard 28-day deadline. You can borrow up to 75% of the value on standard residential security, and repay by selling the property on or refinancing onto a longer-term loan.
Is it hard to get a mortgage on an auction property?
Often, yes, for two reasons.
First, timing. A mortgage typically takes six to eight weeks to arrange, and an auction purchase usually has to complete within 28 days. The dates simply don't line up.
Second, condition. A mortgage lender generally needs the property to be habitable, sound structure, working kitchen and bathroom. Many auction properties aren't, which is precisely why they've ended up at auction.
The practical answer is to complete with an auction bridging loan, then move onto a mortgage once the property is ready and the deadline is no longer a factor. In other words, the mortgage often works better as your exit than as the way in.
What deposit do I need?
For a 75% LTV loan on standard residential security, you'll need to fund the remaining 25% of the price, plus fees. Remember that the 10% you hand over on auction day counts towards the purchase price, it isn't a separate deposit for the loan.
How much does auction finance cost?
Expect a monthly interest rate (from around 0.55% per month for the strongest cases, higher for commercial or heavy-refurbishment deals), an arrangement fee of usually 1-2% of the loan, plus valuation and legal costs. Because it's short-term, judge it on the total cost over the months you'll actually hold the loan, not the annual figure.
Can I get auction finance on an "unmortgageable" property?
Usually, yes. Properties that fail a mortgage lender's condition test, no kitchen or bathroom, non-standard construction, ex-council, high-rise, are a core use for auction bridging loans. The property doesn't need to be habitable on day one, only your exit needs to stack up.
How long does auction finance take?
A decision in principle can often be issued the same day. A full completion, including valuation and legal work, typically takes two to three weeks for a straightforward case, comfortably inside the 28-day window if you start early. Ignore any promise of completion "in hours."
What is the modern method of auction?
Some lots are sold by the "modern method," which gives you a longer window, commonly around 56 days across two stages, rather than the traditional 28. It buys you time, but auction finance is still often the cleaner route for run-down, commercial, or complex lots that a term lender can't fund quickly.
Recent completions
Real deals, real results.
See how we support property deals, with clear decisions, pragmatic structures and delivery against agreed timelines.
Gerrards Cross
£680,000
68% LTV
11 days
St John’s Wood, London
£2,051,142
66% LTV
14 days
Loughborough
£552,000
61% LTV
6 days
Get a decision before you bid
The strongest position in an auction room is knowing exactly what you can borrow before you raise your hand.
Auction and bridging finance from Goldhill Finance is unregulated and provided for investment and commercial purposes, secured against property. Goldhill Finance is not FCA-regulated and provides unregulated bridging loans only; these loans are not covered by the FSCS or the Financial Ombudsman Service (FOS). Your property may be repossessed if you do not keep up repayments on a loan secured against it.