Auction Property Finance

You need large-scale funding fast to secure property bought at auction? We can help you arrange it.

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Funding options


Short term funding

  • 1 to 12 months terms
  • £25,000 – No Maximum
  • Individual arrangements
  • Fast decision

Simple to arrange

  • Interest roll-up schemes
  • Adverse Credit – no problem
  • Lending secured on property
  • Funding can be available in 5 – 7 business days

Any type of property

  • Any type of property bought at auction
  • Up to 100% Loan to Value available
  • Property in any condition
  • Commercial, Residential and Land

Talk to Rangewell – the business finance experts

Auction finance for property is only available from a few specialist lenders. We know them, and can use our contacts to help you secure the high levels of funding you need in the shortest possible time

At Rangewell we recognise your professional status, and we work harder to find you better solutions - which can include 100% finance for many of your needs.

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Finance for your dream property purchase at auction

Looking for a lender to finance an auction property purchase? We can help.

Whether you are looking for a property bargain or a property suitable for refurbishment or redevelopment, buying at the auction house could pose a financial challenge for most of us. 

Table of Contents

Buying a property at auction can be a great opportunity for both developers and homeowners. Before you make your first bid, you'll need to know how you are going to pay for the property, includind any fees - this is where specialist property auction finance comes in.

when buying a property, you will typically need to provide a deposit, usually 10%, on auction day itself to make a purchase. Then you'll probably need to aim towards completion within a maximum of 28 days.

Very few people have the funds to buy a property fully in cash, even at auction prices - that is why auction finance is often seen as a sensible plan of action and can provide both an affordable solution and peace of mind.

What is Auction Finance?

Auction finance is a type of term finance, similar to a bridging loan, and it is designed to help you purchase properties at auction because it can be arranged quickly.

This type of loan can be used for virtually any kind of property, whether for land purchases, residential properties, commercial or mixed-use use properties, and those properties that need planning permission or regardless of whether it is habitable or not.

Because of the speed required, Rangewell's team of experts can support you to source the following documents to get you started quickly:

  • A Decision in Principle (DIP)
  • Mortgage in Principle (MIP)
  • Agreement in Principle (AIP)

In effect, these are all the same thing, but different lenders (confusingly) may refer to them by other names. 

You'll also need to closely analyse the legal pack for particular conditions (miss-understanding these can incur a lot of costs post-completion) as well as helping you think through the exit strategy for what is, in effect, term finance.

Auction finance, unlike traditional mortgages or commercial mortgages, is designed for short-term use only. 

As a result, it is relatively expensive compared with a conventional mortgage. 

On the plus side, it makes it possible to raise funds you need at short notice, almost always without the need for a business plan, lenders reviewing credit histories or a strong track record in property purchases.

Considering an auction property for commercial use?

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How does Auction Finance work?

The loan can be as short as one day and run up to a maximum of 12 months. Loan amounts start at around £25,000, and Rangewell has access to lenders with no maximum lend (subject to Loan-to-Value criteria).

Finance can be arranged within a matter of hours and funds released in as little as 72 hours. We'd suggest approaching a lender to discuss valuation fees, having the required credit checks and getting an agreement in principle before you commit yourself to a maximum purchase price you're willing to go to at the auction itself.

Where large amounts are involved, lenders will carry out detailed checks but can make rapid decisions because they can work without the bureaucracy that slows down many traditional lenders.

You will need to have an exit strategy when you take out high-cost lending, such as auction finance. The most appropriate long-term funding solution will depend on the property and how you will use it but can include a commercial loan secured on the property itself or a conventional or buy-to-let mortgage.

What properties can you buy?

All types of properties are sold at auction, and as such, finance is available for a wide range of different property types.

Property at auction may include the following:

  • Residential properties not suitable for high street lenders
  • Residential investment properties (including buy-to-let or second home/holiday homes to run as businesses).
  • Commercial property (both occupied and unoccupied)
  • HMO and Multi-tenant – including tenanted
  • Mixed-use and semi-commercial property
  • Light industrial units
  • Land and building plots suitable for property developers (we have a number of lenders who actively consider first-time developers)
  • Uninhabitable/unmortgageable properties and properties that most lenders would see as a complex development project
  • Vacant possession

To learn more about what you can borrow for your specific auction property purchase, give us a call. Our team of experts will support you with the whole process, including assembling your application and scouring the whole of market to find a lender that works for you. Auction property finance can be tricky to secure, so having a knowledgable broker is an invaluable asset. 

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How much does auction dinance cost?

Short-term finance is always more expensive than long-term lending. The costs of auction finance can be relatively high but because loans are for the short term, the overall cost may have little actual impact on the long-term costs of a significant purchase. As always, it's essential to take specialist advice and review the planned investment on a step by step basis.

How much finance can I borrow?

If you make a property purchase at auction, it is imperative to ensure you have identified the correct auction finance product. One of the critical features of auction sales is that you are committed to purchasing once the "hammer has fallen". 

Therefore, buying at auction without loan finance in place can be dangerous.

Lenders tend to offer loans for between 1 and 24 months, and our analysis of our data shows:

  • 1-12 months (offered by lenders around 70% of the time)
  • 12-18 months (offered around 20% of the time)
  • 18-24 months (offered less than 10% of the time)

It is essential to bear these time frames in mind when planning any planning applications or renovation works.

Many lenders will also consider 100% auction finance if you have an additional property or asset over which they can take charge. Lenders are very flexible in what they will think is a suitable property for the extra lending they will provide.

What types of finance can I get?

Auction finance loans offered for auction purchases are short-term bridging loans. Due to the tight time frames, from initial inquiry to drawdown, they need to be applied for and completed quickly and efficiently.

When buying at an auction, it's important to use specialist action finance brokers who have deep experience in bridging finance products, the specialist lenders that offer these financial products and up to date knowledge of auction finance rates.

We strongly suggest talking to experts like Rangewell that take the time to understand your specific situation and structure appropriate finance accordingly.

From before the auction to your exit plan

Our team can support you with the finance you need

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How quickly can I get a loan?

Auction properties almost always need to complete within a 28-day timescale, which is a critical determinant in any auction financing.

At Rangewell, we work to a Service Level Agreement with each of our clients, and this will usually mean that we can source a Decision in Principle within 4 hours and a formal credit offer within 3 days. This leaves plenty of time for lawyers to complete their reports on title and land registry searches.

The most common reasons for delay (and therefore things to focus on) include:

  • Bad credit history: Lenders are used to credit issues and adverse credit histories. It is important to be up-front and transparent with them as quickly as possible; otherwise, the process becomes delayed.
  • Business owner-occupiers: If your business or a business you own will occupy the property, please ensure this is signalled to the lender as quickly as possible.
  • Delays in providing the paperwork provided wholly and speedily (in 80% of cases where the 28-day deadline is not met, it is due to the borrower or their lawyer not providing paperwork as quickly as it should have been).

How long does it take for a purchase to complete?

In almost all cases, auction purchase will need to be completed within 28 days, but this can be checked by reviewing the auction catalogue or the Auction Product Sheet, which clearly describes the auction process.

Due to the stricter anti-money laundering (AML) and Know Your Customer (KYC) regulations being implemented in many cases. If you are bidding in an auction, you will often have to complete a Preliminary Form or an Auction Finance Application form before being allowed to bid - this is another opportunity to clarify the following:

  • the auction purchase procedures in detail 
  • the auction timing and if it is remote or "auction in person"
  • the auction sales particulars for the lot you are interested in
  • How the bidding at auction will take place

What rates can I expect to pay?

Interest rates charged will vary, depending on your circumstances, your business, and the deal to be funded. Current rates can range from 0.45%-1.25% per month.

In addition, there may be fees, including arrangement and exit fees. For example, suppose the loan runs over the agreed term. In that case, there will also be substantial penalty charges, so it is always important to be clear about your exit route from the short-term finance and to take any exit fee charged by your selected lender into consideration.

Repayment arrangements can vary. In some cases, all fees and interest can be rolled up into the loan, which can be settled with a single repayment at the end of the loan period. In other cases, interest can be paid monthly via an Agreed Monthly Interest Rate.

Why buy a property at an auction?

Property auctions are where properties that might otherwise be difficult to sell are available. Typically, these properties can be in poor condition or may have been repossessed by a lender due to mortgage arrears.

They can be popular among investors looking for property to refurbish and let out and for developers, who may be looking for property in need of substantial work before resale at the full market price. 

Traditional lenders, high-street banks, and buy-to-let lenders will not lend when the property is not in an immediately habitable and lettable condition. 

This limits the number of potential buyers and, with it, the resale value, providing an opportunity for property professionals. However, buying at auction requires cash. Therefore, you will be expected to immediately pay a 10% deposit of the hammer price with most auction sales.

You will then be required to pay over the balance of funds, including the auctioneer's commission, usually within 28 days.

Failure to provide the total funds may lead to you losing both the property and your deposit.

It is therefore essential to have the funds you need. Conventional solutions that can provide a high level of funding for property buying, such as the various types of mortgages simply cannot be arranged in the time available.

Auction finance is designed to be arranged quickly and provide the level of funding you need in the necessary timescales.

Find the auction bridging finance that is right for you

Buying at auction will involve large-scale funding and getting the right deal can make a difference of tens of thousands of pounds to the overall cost of your project.

Even a fraction of a percentage point can substantially differ what you pay, while fees and penalties can further complicate the position. Many lenders offer funding, all with their own approach to interest rates and fee arrangements. 

At Rangewell, we know the lenders who can offer business bridging, and we can use our expertise to identify the most appropriate deal for you. Our knowledge can not only help you secure the funding you need - it can save you a great deal of cash.

Auction loans are designed for short-term use. However, we can help you use them as a tactical funding source and then find the most competitive source of long-term funding to replace them.

Find out more about other types of property finance, including:


  • Find the most competitive auction finance for £2.7 million to let a developer secure an ex-military estate

  • Source auction finance for a first time developer to buy a run down terrace house for £38,000

  • Found a lender to allow a business park operator buy a derelict neighboring site for expansion

  • Find the most competitive arrangement to allow a builder to acquire an infill plot

  • Helped an experienced landlord buy an uninhabitable council block for refurbishment

Discover our range of finances

Every type of finance for every type of business

Our goal is very simple - to help businesses find the right type of finance as quickly, transparently and painlessly as possible.

Helping you build your profits

  • For property professionals
    Professional landlords, investors and property developers can all use auction finance as part of their overall funding strategy.
  • For businesses with property needs
    Auction loans can help any business arrange property acquisitions at auction - including your own business premises.
  • For any scale of project
    Auction lots can range from run down single properties to large blocks and commercial and residential estates. Funding can be provided at all levels from thousands of pounds to tens of millions.
  • For development projects
    Auction loans can provide a funding solution for short-term development projects which can be refinanced with a conventional mortgage when completed.
  • A fast decision
    Auction finance providers financiers will look at your credit profile, the value of the asset, and your exit strategy to make a decision in the shortest possible time.
  • A single repayment
    In most cases, all fees, interest and charges can be rolled up into a single repayment made at the end of the loan term, once an alternative fund source has been arranged.

Download Rangewell’s free and detailed guide to Auction Finance

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Frequently asked questions

Have a question?

Can I get a loan for an auction property?

Auction finance is the simple way to arrange finance for property bought at auction. It is a particular type of bridging loan and will only provide funds if a property suitable for providing security is purchased at auction.

How much is a bridging loan?

Because it is only for the short term, a bridging loan will have a high-interest rate. However, the actual rates will vary between lenders and the property deal being financed. At Rangewell, we can help select the most appropriate lender and negotiate a competitive rate of interest.

How do you buy property at auction?

To buy at auction, you must first register with the auctioneer, who will then be able to accept your bid, which you can make in-person in the auction room or by phone. 

If yours is the winning bid, you will need to immediately provide a deposit of around 10% to secure the property and pay the remainder, usually within 28 days - or run the risk of losing the property and the deposit.

How does a Bridging Loan work?

A bridging loan is a large-scale, short-term loan designed to provide funding for a short period while a longer-term solution can be arranged. It is a form of secured loan, with the security provided by the property being financed, which means the property may be at risk if you do not repay.

How much can you raise?

Let us know some details, and we'll tell you how much you can lend. You'll likely need to have the deposit money, but if you have other property assets, you may be able to borrow against these. 

How do I apply?

Yes, you can get a mortgage agreement on a property that you buy at the auction. However, lenders will have criteria to meet before being able to do so. Speak to your lender for more information.

Auction properties almost always need to complete within a 28-day timescale, which is a critical determinant in any auction financing.

At Rangewell, we work to a Service Level Agreement with each of our clients, and this will usually mean that we can source a Decision in Principle within 4 hours and a formal credit offer within 3 days. This leaves plenty of time for lawyers to complete their reports on title and land registry searches.

What are the best short-term finance options?

We'd suggest a bridging loan. This will tide you over until you get another loan, usually of a more significant value. A bridging loan will offer two benefits. First, it will help you with the funds to buy the property giving you ample time to wait, and another, getting a good deal on the old one. 

Speak to Rangewell for more information. 

What are the best short-term finance rates for property purchases?

 We can offer rates from 0.48%, but all lenders will have different criteria. Speak to Rangewell for more information. 

Is auction finance a good idea?

Buying at auction can allow you to expand your options by buying at a discount. In addition, you face less competition than when you buy traditionally. You'll be dealing with a different pool of potential buyers, often experienced investors. 

What happens if you buy at auction and can't get finance?

Conditional approval is necessary if you are bidding auction, as there is no finance clause, so you can't back out if you fail to get a loan. You will, however, lose your deposit and be in breach of your contract.

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Every type of finance for every type of business from the entire market - over 300 lenders.


Specialist Finance Experts support you every step of the way.


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