Everything you need to know about auction bridging finance: 28-day deadlines, fast approval processes, completion in 5-7 days, and strategic exit planning. Expert guidance from FastBridge Funding.
DIP Speed
59 mins
Completion
5-7 days
Rates From
0.45%
Step-by-step overview of the auction finance process from property viewing to completion
Day 0-5
Identify auction property, conduct survey, agree purchase price. Must act quickly.
Secure bridging finance approval BEFORE auction date
Day 6-10
Win property at auction, place winning bid, sign memorandum of sale. 10% deposit due.
28-day completion deadline starts after memorandum signed
Day 1-3
Submit full bridging application, property valuation, title review, searches commenced.
FastBridge gets DIP (Decision in Principle) within 59 minutes
Day 4-18
Solicitor reviews title, completes searches, raises enquiries with seller. Survey completed.
Parallel processing speeds everything up
Day 19-28
Final lender confirmation, funds released, completion at solicitor. You own the property.
Completion typically 5-7 days from full application with FastBridge
Auction bridging works for diverse property types from residential to development land
Houses, flats, bungalows being sold at auction
Buy-to-let properties or portfolios at auction
Properties needing light to heavy renovation
Land with planning permission or development potential
Long-lease properties sold at auction (>70 years)
Commercial/residential mixed-use buildings
Understand all costs associated with auction bridging finance
1-2% of loan amount
£2,000-£4,000 on £200k loan
Fee to arrange the bridging finance
0.45-0.80% per month
£900-£1,600 per month on £200k loan
Rolled-up or monthly depending on agreement
£250-£1,000
Typically £400-£600
Required valuation of property for security
£400-£800
Typically £500-£700
Solicitor fees for completion
0-1%
Often £0 with many lenders
Fee when loan is repaid/refinanced
£150-£350
Typically £200-£250
Title searches and enquiries
For a £200,000 auction purchase with 12-week completion timeline:
Compared to 3-month standard mortgage cost of £4,000+ interest, auction finance provides certainty for a competitive price.
| Aspect | Auction Bridging | Standard Mortgage | Cash Purchase |
|---|---|---|---|
| Process | Quick approval, 28-day completion, property in hand | Long approval process, 8-12 weeks, rigid timelines | Fast but requires full funds upfront |
| Timeline | 5-7 days typical completion | 8-12 weeks or more | 2-4 weeks depending on legal |
| Costs | 0.45-0.80% monthly + 1-2% fees (£3,000-£8,000 typical) | Lower rates (2-5%) but long-term cost higher | Opportunity cost of capital tied up |
| Certainty | High certainty of completion once approved | Risk of mortgage offer withdrawal or issues | Complete certainty if funds available |
| Flexibility | Can refinance, extend, or sell exit | Locked into mortgage terms | Full flexibility but limited liquidity |
| When To Use | Auction deadline, chain break, quick acquisition | Buy-and-hold long-term property | When you have full funds and want simplicity |
Understand potential risks and how to mitigate them when buying at auction
Only 28 days from auction completion date to final payment
Mitigation: Get pre-approval before auction, use experienced broker, plan exit strategy in advance
Unexpected structural problems found during survey
Mitigation: Commission survey before auction decision, budget for repairs, factor into financing
Boundary disputes, missing documents, unregistered rights of way
Mitigation: Review legal pack provided by auctioneer, buy title indemnity insurance if needed
Planned refinance or sale doesn't complete in time
Mitigation: Have backup exit strategies, secure extension option upfront, maintain exit flexibility
Property valued lower than purchase price affects LTV
Mitigation: Get valuation before bidding, understand LTV based on lower valuations, budget accordingly
If exit takes longer, interest costs accumulate significantly
Mitigation: Plan realistic timeline, secure competitive rates, refinance quickly if possible
FastBridge DIP (Decision in Principle) in 59 minutes removes completion risk
Discuss your auction timeline, budget, property type, and exit strategy with our expert brokers.
Share target property details, purchase price estimate, loan amount needed, and property location. No formal application yet.
Receive Decision in Principle confirming lending amount, LTV, typical rates, and key terms. Valid for 30-90 days typically.
With DIP in hand, you know financing is confirmed. Can bid competitively knowing you can complete within 28 days.
After winning, submit full application with actual property details. Full approval typically within 1-3 days.
Funds released, property completion proceeds seamlessly. You own the property, execute planned exit strategy.
Get answers to the most common questions about bridging loans
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Discover our comprehensive range of bridging finance solutions across the UK
Secure fast finance for auction properties with completion deadlines as short as 48 hours.
Finance property renovation and development projects with flexible bridging solutions.
Bridge the gap when your property chain breaks down or you need to complete quickly.
Access equity from your current property while searching for your next home.
Secure land for development projects with fast access to bridging finance.
Exit your development project with flexible refinancing options.
Call now to get introduced to an FCA-regulated broker. Available 24/7 with instant responses and expert guidance when you need it most.