The 28-Day Auction Timeline
When you win an auction property, you’re legally committed to completion within 28 days. This
is your window to secure finance and complete the purchase. Unlike standard property
purchases (6-8 weeks), auction timescales demand speed.
Auction Finance Process
Week 1: Immediate Finance Application
Within days of auction purchase, arrange auction finance. Lenders understand the tight deadline
and prioritise assessments.
Week 2: Valuation and Agreement
Lender completes rapid valuation. Offer issued and accepted. Documentation completed.
Week 3: Legal and Underwriting
Solicitor completes legal checks. Lender completes final underwriting. Funds are advanced.
Week 4: Completion
Funds released, completion happens, keys exchanged.
Types of Auction Finance
Auction Bridging
Short-term finance to acquire property rapidly. You refinance or sell after 6-12 months.
Development Auction Finance
Finance assesses property’s development potential. Funds development alongside purchase.
Auction Mortgages
Standard mortgages structured for rapid auction completion. Available for investment or
residential properties.
Auction Finance Costs
Auction finance costs are higher than standard mortgages due to rapid assessment and risk.
Expect:
- Arrangement fees: 1-2% of loan amount
- Interest rates: 1.5-2% monthly for bridging (or 5-7% annual for mortgages)
- Valuation fees: £400-£800
- Legal fees: £600-£1,200
Auction Finance FAQs
Q1: Can I get auction finance approval before auction?
Yes. Most lenders provide Agreement in Principle before auction, speeding post-auction
process.
Q2: What if the auction bid exceeds my finance limit?
You have days to increase finance approval. Lenders understand auction dynamics and can
increase quickly.
Q3: Is the property condition assessed for auction finance?
Yes. Rapid valuation assesses condition and value. Poor condition might require higher rates
or larger deposit.
