Auction Bridging Loans
Completion in 5–10 Days

An auction bridging loan is a short-term secured loan used to purchase a property at a UK property auction, where the standard 28-day completion period rules out a standard mortgage. The loan is secured against the property being purchased (and sometimes an additional security), with interest rolled up and repaid at the end of the term when you sell or refinance.

On straightforward residential lots with AVM valuation, AF Credit regularly completes in 5–7 working days. On lots requiring a physical valuation, 10–14 working days is typical. We will always confirm your expected timeline at the point of enquiry — before you bid if you contact us in advance.

Yes — and we strongly recommend you do. Contact us with the lot number, address, auction house, auction date, and your estimated bid up to. We will run our initial checks, confirm appetite, and issue indicative terms before auction day. You then bid with the certainty of knowing your finance is ready to go the moment the hammer falls.

Failing to complete within the auction deadline (typically 28 days for unconditional auctions) means you forfeit your 10% deposit and the vendor can re-list the property. You may also face a legal claim from the vendor for any additional losses they suffer from the re-sale. This is why using a proven fast lender — not just a lender that claims to be fast — is critical. AF Credit has evidence of completions across hundreds of auction transactions.

On eligible standard residential lots, AF Credit can use an AVM (automated valuation model) or a desktop valuation prepared remotely by a RICS-qualified surveyor — no physical site visit required. This removes 2–3 weeks from the timeline. For commercial lots, mixed-use property, or heavily dilapidated residential property, a physical valuation is typically required. We instruct immediately to minimise delay and always confirm the valuation route at enquiry stage.

AF Credit lends up to 75% LTV on residential auction lots and up to 65% LTV on commercial lots. The LTV is calculated against the lower of the purchase price and the RICS/AVM valuation. Maximum loan size is £2,000,000. Minimum loan size is £26,000.

On the fall of the hammer at an unconditional auction, you pay 10% of the purchase price immediately. This must come from your own cleared funds — it cannot be funded from the bridging loan. The bridging loan then covers the remaining 90% balance (subject to LTV limits). You will also need to cover arrangement fees and legal costs.

Yes, in many cases. AF Credit takes an asset-led, common-sense approach to lending. We assess each case individually. Prior CCJs, missed payments, or other credit issues do not automatically prevent you from borrowing — the key factors are the property value, loan-to-value, and the credibility of your exit strategy. We do not penalise adverse credit with automatic declines.

An unconditional auction (traditional format) requires you to exchange contracts immediately on the fall of the hammer and complete within 28 days. A conditional auction (Modern Method of Auction, used by iamsold and others) gives you a longer period — typically 28–56 days — to exchange and complete after a reservation agreement is signed. Bridging finance works for both, though standard mortgages may be viable for conditional auctions with longer timescales.

Yes. We welcome submissions from regulated mortgage intermediaries and specialist finance brokers. Contact us to register and get direct access to our underwriting team. We offer same-day DIP responses, competitive procuration fees, and a named underwriter contact for every case.