Interest rates from 0.55%pm – first and second charge loans available

Draw down of funds within 5 to 14 days. UK-wide funding availability.

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Auction house finance

Around one in five of all bridging loans are used to fund the purchase of land or property at auctions.

Redrock Commercial Finance have worked with homemovers, developers, investors, and landlords since 2011. We make sure that our borrowers have the finance when they need it to pay the deposit on the land or property they’ve bought at auction and to make payment in full for their purchase with the 28 days required by auctioneers.

We also work with clients who want to purchase property for themselves and their family to live in as well as landlords, investors, and developers seeking funding for their first project.

Auction finance UK – the process


Get in touch with us by email or via the contact form to tel us the size of the facility you’ll need for auction and the type of property you wish to purchase.

Get a Decision

Almost immediately, we’re able to give auction finance pre-approval. Within 3 hours, we’ll have an in-principle answer from a lender.

Bid at the Auction

When you’re at the auction, bid for the properties you’ve targeted with the knowledge that the funding you need is available to you.


When you win the auction, you can pay your deposit over to the auction immediately and then your lender will pay the balance of the transaction directly.


Who uses auction bridging finance?


Purchase residential, commercial, and mixed-use property to (renovate) and rent out


Purchase residential, commercial, and mixed-use property to renovate and sell on


Use to purchase your next property (regulated bridging loan required)

Property auction finance UK criteria


Loan to value (LTV): 80%
100% funding is available providing you have additional security with sufficient equity
Loan amount: £26,000+
Loan term: 3 to 24 months
Interest rates from: 0.55%
Interest options: serviced, retained, rolled-up
Exit strategy: sale or refinance*
Decision: 24 hours
Completion: 10-14 days
Loans available in UK and Europe
For developers, landlords, investors, and homemovers
Available on first and second charges

What is auction finance used to pay for?


Property to live in, to rent out, or to renovate and sell on


Property for all types of commercial use including care homes, factories, hotels, offices, restaurants, shops, and warehouses
Occupy the premises yourself, rent out to other businesses, or renovate and sell on


Property where less than 40% of available space is used for residential accommodation
Used to purchase a variety of properties including offices, retail units, public houses, restaurants, and shops
Occupy the premises, rent out to residential and commercial tenants, or renovate and sell on


Agricultural land
Development land with planning permission
Land without planning permission

How does auction finance work?

The type of finance most commonly used to purchase auctions at property is a bridging loan (or a bridge loan).

What is a bridge loan? Rather like a mortgage you might use to purchase land or property, the lender providing you with the bridging loan will take first charge over the property.

Unlike a standard mortgage, a bridging loan is short-term finance with a maximum term of 2 years where a standard mortgage offers you up to 35 years to pay for the property.

A first charge means that, if you are unable to pay the loan back on time and in full, your lender may repossess the land or property. The proceeds of the sale will then be used to repay the outstanding balance on your bridging loan.

How does a bridge loan work? You do not make monthly repayments on a bridging loan. Instead, you repay the outstanding balance all in one go on or before the expiry date of your facility.

Auction finance providers will ask you to provide them with an exit strategy for repaying your loan when you apply for funding. Typical exit strategies for auction property include:

  • the sale of the property
  • the securing of an occupier mortgage on the property if you intend to live in the property or trade from it (if you’re buying commercial premises)
  • the securing of a buy-to-let mortgage on the property if you intend to rent it out to residential or commercial tenants.

When you sell the property or you arrange a mortgage on it, you then use the proceeds to repay the auction finance in full.

If the work you intend to carry out on the property is extensive, you may benefit by applying for auction finance first and a refurbishment finance or development finance package second. The funds you receive from the refurbishment or development finance provider would then be used to pay off your auction bridging loan.

Auction property finance UK – property types

Auction finance can be used to purchase the following types of property:

  • residential property including HMOs (which you may live in, rent out, or renovate to sell on)
  • business premises (care homes, factories, hotels, offices, restaurants, shops, warehouses, and more)
  • mixed properties (offices, retail units, public houses, restaurants, and shops in which less than 40% of the floor space is residential and in which you’ll never live)
  • land (agricultural land, development land with planning permission, farmland, land without planning permission)

Before you apply for auction finance, you should inspect each property you intend to bid on – we would strongly advice that you view each property at least once.

Please remember that you will be expected to have as a deposit at least 20% of the price of the property. You will also need to budget for any renovation work that you expect to carry out once you have taken ownership of the property.

We are able to find 100% auction funding if you can provide security on additional property where there is sufficient equity. A second charge will be taken on these properties if there is an outstanding mortgage or loan secured on them already.

When you contact us and take these details from you, we will let the auction finance provider know of your intentions and your budget. Please stay within your budget because many auction funders are unwilling to change the terms of their offer if you don’t stick broadly to the budget agreed to when the finance was arranged.

Will you need a regulated bridging loan?

If you intend to use auction finance to purchase property which will be your and your family’s primary residential property, you will need a regulated auction finance.

Like regulated bridging loans, the maximum term of any regulated auction finance package is 12 months. Redrock Commercial Finance is an FCA-regulated bridging loan provider.

Why not apply to auction finance lenders direct?

Over the course of the last ten years, we’ve built up a substantial base of landlord, investor, and developer clients who use Redrock to find the funding they need to purchase new property and land at auction. In addition, the same clients rely on us to find them the funding they need for the renovation and development work needed on their newly acquired property.

Redrock Commercial Finance is a whole of market bridging loan and development finance brokers. We work with all traditional bridging loan and development finance providers as well as newer funders entering the market including specialist lenders, private banks, and international financial institutions.

Unlike other brokers, Redrock has not expanded its range of personal and commercial finance products. Instead, we have chosen to focus solely on providing clients with the most competitively-priced bridging loan and development finance products on the most favourable terms.

We work closely with the underwriting teams at each of the lenders on our extensive panel. Our knowledge of each lender’s acceptance criteria and how they prefer funding proposals to be presented means that we’re able to secure a firm in-principle decision for borrowers within 3 working hours.

We understand that, for many of our borrowers, time is of the essence and, on every deal, we make every effort possible to at least match but preferably beat the schedule you’ve told us that you need us to work to.

Many of the lenders on our panel do not accept direct applications from borrowers. Some of our lenders do but the offer you’ll receive via Redrock will be much better than the offer you’d receive if you made a direct approach. This is because of the quality of the working relationship we have established and the trust we have built with each lender on our panel.

We believe that you will not find a deal with better rates and more favourable terms if you looked for auction finance yourself.

Auction finance rates

Auction finance rates vary depending on the amount of money you wish to borrow, the value of the property you wish to purchase, and your level of previous experience in property investing, development, or as a landlord.

For an indicative estimate of the monthly and overall costs of auction bridging finance, please click for our auction bridging loan calculator.

Get a competitive auction finance bridging loan quote

If you have seen a property or land you wish to purchase at auction and you wish to work with an experienced team offering whole of market access to the most competitively-priced deals on the most favourable lending terms, please call us on 020 3780 7610 or click here for our contact form.