Auction Finance
Fast Completions, Certainty of Funds​
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Our Auction Finance solutions provide rapid, short-term funding to help you meet tight auction deadlines. Designed for speed and flexibility, we support residential, commercial and mixed-use purchases, refurbishments, and other time-critical transactions.
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With fast decisions, reduced upfront costs and flexible interest structures, we help buyers secure property quickly and complete with confidence.
Auction Bridging Loan Criteria
A Guide to Auction Bridging Loans
Auction finance is a fast, short-term property funding solution, typically structured as a bridging loan, designed to help investors, developers and buyers complete auction purchases within strict deadlines - usually 28 days or less.
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We specialise in Auction Finance and Auction Bridging Loans, providing rapid access to funding for residential, commercial, mixed-use, land and distressed properties where traditional mortgage finance is too slow or unsuitable. Where appropriate, we use AVMs (Automated Valuation Models), desktop valuations and internal valuation methods to reduce upfront costs and remove unnecessary delays caused by physical inspections.
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This streamlined approach allows us to deliver rapid credit decisions, faster completions and greater certainty of funding for auction purchases. Our flexible funding solutions are designed for time-sensitive transactions, refurbishment projects and auction re-bridges, helping buyers secure property quickly and complete with confidence.
How does Auction Finance work?
Auction purchases require fast completions. Our streamlined underwriting process allows funds to be released in days rather than weeks, helping buyers meet auction completion deadlines with confidence.
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Most auction purchases require a deposit of 20% to 25% of the purchase price, which is paid on the day of the auction. Before bidding, it is essential to have deposit funds available in advance. As a specialist auction finance provider, we can assist with deposit funding by leveraging equity in existing properties within your portfolio, alongside financing the auction purchase itself. In suitable cases, additional borrowing can also be structured using multiple security properties to strengthen the application and increase overall borrowing capacity.
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Working with a lender that truly understands property auction finance, tight completion deadlines and flexible valuation options is critical. Unlike many bridging providers that attempt to cover the entire lending market, we specialise in auction purchases, auction bridging loans, no valuation bridging finance, light refurbishment funding and new build acquisitions. This specialist focus allows us to deliver faster underwriting and reliable funding decisions within auction timeframes.
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Where traditional mortgages typically take 2 to 4 months to complete, auction finance offers significantly greater flexibility and speed. It can be used to fund a wide range of property types, including residential, commercial and mixed-use properties, development sites, land, non-standard or unmortgageable assets, and distressed or vacant buildings. This makes auction finance particularly effective in competitive auction environments, where speed, certainty of funding and completion reliability are essential.
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Auction finance is typically structured as a short-term bridging loan, secured by a first legal charge against the property. Interest can be arranged on a retained, serviced monthly, or rolled-up basis, depending on the borrower’s strategy and cashflow position. The loan is repaid at the end of the term through sale, refinance, or longer-term mortgage funding.
Auction Finance Options:
Deposit Funding & Portfolio Leverage:
For buyers requiring additional capital at exchange, we can structure deposit funding by leveraging equity held in existing properties within your portfolio. In suitable cases, multiple security properties can be used to increase borrowing capacity and strengthen the overall funding position.
Flexible Interest Structures:
Auction finance can be structured with retained interest, serviced monthly interest or rolled-up interest, depending on cashflow strategy and exit plans. This flexibility helps borrowers manage costs during the loan term while maintaining certainty of repayment.
Wide Asset Type Coverage:
We provide auction finance for a broad range of property types including residential homes, commercial buildings, mixed-use assets, development sites, land, non-standard properties and distressed or vacant assets, allowing buyers to secure opportunities that traditional mortgage lenders often decline.
Case Study 1: South London
Background of the deal:
The client required urgent bridging finance secured against a part single, part two-storey detached vehicle showroom. We completed using a no-valuation structure, meeting a tight 10-working-day deadline to fund an onward purchase following exchange of contracts.
0.89%
Per Month
10
Months
50%
LTV
£700k
Loan
Our Process
Simple. Fast. Straightforward.
Get a quote
Discuss your requirements with our team for a tailored quote, or apply online for a fast decision.
Submission
Following receipt of your application, we’ll request the necessary information to assess affordability and suitability for the product.
Once confirmed, we’ll approve your application and valuation type on the same day.
Legal & Valuation
Once valuations and legal requirements are complete, we’ll provide a formal offer for your review before funding your loan.
What is Auction Finance?
Auction Finance is a short-term property funding solution, typically structured as a bridging loan, designed to help buyers complete property purchases at auction within strict timeframes - usually 28 days or less.
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Facilities are available up to 75% loan-to-value (LTV), subject to the property type, location and overall risk profile. Interest rates typically range from 0.80% to 1.15% per month, depending on the borrower profile, asset type and the structure of the funding facility.
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Instead of relying on slow traditional mortgage processes, auction finance is built for speed and certainty of funding. Where appropriate, lenders may use Automated Valuation Models (AVMs), desktop valuations, internal assessments, or recent valuation reports to accelerate underwriting and remove unnecessary delays caused by physical inspections. This enables faster credit decisions, reduced upfront costs, and a more efficient completion process compared to traditional mortgages.
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Depending on the transaction, the information required from the borrower is typically limited to basic property details, auction legal pack documentation, purchase price, photographs or videos, and details of the proposed exit strategy. This streamlined approach allows buyers to move quickly, secure funding with confidence, and meet auction completion deadlines without unnecessary friction.
What Are the Benefits of Auction Finance?
Auction finance provides fast, flexible funding designed specifically for property auction purchases, helping buyers meet strict completion deadlines while maintaining certainty of funds.
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Fast Completion Times
Auction finance is built for speed, allowing buyers to complete within typical auction timeframes of 28 days or less. Streamlined underwriting and alternative valuation methods enable funds to be released far quicker than traditional mortgage finance which can take from 3-5 months to complete.
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Certainty of Funding
Securing finance before or immediately after an auction is critical. Auction finance provides early credit approval and clear funding structures, reducing the risk of failed completions and loss of deposits.
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Flexible Property Acceptance
Unlike high street lenders, auction finance can be used for a wide range of property types including residential, commercial, mixed-use assets, land, development sites, non-standard properties and distressed or vacant buildings.
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Reduced Upfront Delays
Where suitable, AVMs, desktop valuations and internal valuation methods can be used to remove physical inspection delays, helping transactions progress without unnecessary bottlenecks.
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Short-Term Funding With Clear Exit Options
Auction finance is typically structured as a short-term bridging loan, giving buyers time to refurbish, refinance or sell the property while maintaining control of the investment timeline.
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Competitive Auction Advantage
Having access to fast, reliable funding allows buyers to bid with confidence, move quickly after the auction and secure properties in highly competitive auction environments.
Our Lending Approach
A1 Loans is a specialist property lender providing fast, flexible short-term finance for residential, commercial, and mixed-use property. We support property investors, landlords, developers, and business owners who need certainty of funding, clear terms, and the ability to move quickly when opportunities arise.
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Whether you are purchasing, refinancing, releasing capital, or funding works, our streamlined lending approach allows you to complete transactions efficiently without unnecessary red tape or delays.
Move quickly
Act with confidence on time-critical opportunities, including auctions, off-market purchases, and tight completion deadlines, giving you certainty of funding when it matters most.
Add value
From refurbishments and conversions to stabilising rental income, our facilities focus on the strength of the property and the exit strategy, allowing you to improve and reposition your asset without being slowed by complex finance.
Clear and reliable
We provide transparent terms, consistent underwriting, and a straightforward process from application through to completion, so you always know where you stand and can plan with confidence.