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Auction financeBridging finance for auction buyers.
At auction you pay 10% of the price on the day and usually complete within 28 days. Most mortgages cannot move that fast, so buyers use a bridging loan, then sell or refinance. We have access to lending of up to 75% of the purchase price, with up to 100% of the build cost. Tell us about the lot and we can put you in touch.
Bridging: a loan against the purchase, with the interest retained, paid monthly or rolled up. Refurbishment: a day-one advance on the price plus the build cost, drawn as the works go. Stamp duty, the buyer's fee and legal costs are not included.
Purchase bridge: a home bought to let or sell as it is, or to refinance after the sale.
Net advance on day one
£166,875
Gross loan (75% of the price)
£187,500
Arrangement fee
£3,750
Interest, retained (12 months)
£16,875
Total cost of borrowing
£20,625
Repayable on exit
£187,500
Your cash towards the price
£83,125
How the price is paid for
Loan on day one, after deductions £166,87566.8%
Your cash £83,12533.3%
Arrangement fee £3,750
Interest £16,875
Within the usual limits for a purchase bridge: we have access to lending of up to 75% of the purchase price, with up to 100% of the build cost.
We have access to lending of up to 75% of the purchase price, with up to 100% of the build cost. Tell us about the lot and we can put you in touch. Illustrative only, not an offer of finance: rates, fees and loan sizes depend on the lender, the property and you. Stamp duty, legal costs and the buyer's fee are not included. Your property may be repossessed if you do not keep up repayments on a loan secured on it.
Indicative terms · Auction Watch
Indicative terms
Subject to
Indicative only, from the figures above: not an offer of finance or advice. A specialist will confirm the terms. Your property may be repossessed if you do not keep up repayments on a loan secured on it. Auction Watch is not a lender and does not give financial advice. If you ask for terms, we pass your details to lenders and brokers we work with, who may pay us a fee for the introduction; they make their own decisions and offers. If you are buying a home to live in yourself or for your family, that is a regulated mortgage: we only introduce you to a firm authorised by the Financial Conduct Authority.
Enter the cash you have for a deposit. For every live lot we work out the cash needed at the usual loan for that kind of lot, and show you the ones it covers, then open them on the map.
The cash needed is the expected hammer price (the guide plus 15%) less the usual day-one loan for that kind of lot, before stamp duty, legal costs and the buyer's fee. Lots that only specialist lenders would look at are left out. Illustrative: we have access to lending of up to 75% of the purchase price, with up to 100% of the build cost.
Get a decision in principle
We have access to lending of up to 75% of the purchase price, with up to 100% of the build cost. Tell us about the lot and we can put you in touch. Create a free account, then press "Get instant terms" on the calculator: you see indicative terms at once, and a specialist confirms them. A decision in principle is the lender's indication, not a final offer: it still depends on their valuation and checks.
Your account also opens the reports, filters and saved lots on every lot. Questions: [email protected].
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Before you borrow
This page is general information, not financial advice. Auction Watch is not a lender or a credit broker. If finance falls through after the hammer you still have to complete, and you can lose your deposit, so get a decision in principle on the specific lot before the sale. Your property may be repossessed if you do not keep up repayments on a loan secured on it.
Auction finance: questions
How much can I borrow to buy a property at auction?
Typically up to 75% of the purchase price on a purchase bridge for a standard home, 65% on commercial property and 50% on land without planning, plus up to 100% of the build cost on a refurbishment or conversion. The lender's valuation, the property and your plans decide the final figure.
What does a bridging loan cost?
Example rates run from 0.7% to 1.5% a month depending on the kind of loan, with an arrangement fee of about 2% of the loan. Valuation and legal fees are extra. These are illustrative figures, not an offer.
What is the difference between retained, serviced and rolled-up interest?
Retained interest is taken from the loan on day one, so you receive less but pay nothing monthly. Serviced interest is paid each month. Rolled-up interest is added to the loan and compounds, and is repaid with it at the end.
How does the calculator work out the yield?
Gross yield is a year's rent against what the property costs you: the price plus any works. The net yield takes off running costs (20% of the rent unless you change it). The refinance test is the one buy-to-let lenders use: the rent must cover the mortgage interest at 5.5% by 125%, up to 75% of the value.
Which lots can I afford with my cash?
Enter your cash in "What can my cash buy?" on this page. For every live lot we take the expected hammer price (the guide plus 15%), less the usual day-one loan for that kind of lot, and show the lots your cash covers, before stamp duty, legal costs and the buyer's fee.
Is this financial advice?
Auction Watch is not a lender and does not give financial advice. If you ask for terms, we pass your details to lenders and brokers we work with, who may pay us a fee for the introduction; they make their own decisions and offers. If you are buying a home to live in yourself or for your family, that is a regulated mortgage: we only introduce you to a firm authorised by the Financial Conduct Authority.