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Buying a property at auction requires fast access to finance—with completion deadlines as short as 28 days (or even 14 days for some online auctions). If you don’t secure funds in time, you risk losing your deposit and facing legal penalties.
So, how can investors secure auction finance quickly and avoid delays?
This guide breaks down the fastest financing options, key strategies for speeding up approval, and common mistakes to avoid.
Unlike traditional property purchases, auctions follow a fixed completion timeline. When you win a bid, you must:
Secure finance quickly—or risk forfeiting your deposit.
Delays in financing can jeopardise the deal, so knowing the fastest funding methods is key.
Pre-approval (Decision in Principle) gives you a clear borrowing limit before you bid. Many lenders offer auction finance pre-approvals within 24–48 hours.
✔ Personal & business financial details
✔ Credit history check (some lenders offer non-status loans)
✔ Details of expected property purchase.
✔ Proof of funds for deposit
Tip: Having a pre-approved finance agreement gives you stronger bidding power, as sellers know you’re a serious buyer.
Bridging loans are the most popular auction finance option because they:
✔ Can be approved within 24–48 hours
✔ Provide up to 75% LTV
✔ Offer short-term funding (6–18 months)
Best for: Investors planning to refinance or sell the property within a short period.
Example: James buys an auction property for £300,000. He secures a bridging loan at 70% LTV, receiving £210,000 within 7 days, allowing him to complete on time
Some lenders specialise in fast auction finance. Working with these lenders reduces delays in the approval process.
Top Auction Finance Lenders:
Tip: Avoid high-street banks—they’re too slow for auction timelines.
An auction finance broker:
✔ Knows the fastest lenders for your situation.
✔ Speeds up paperwork & approvals.
✔ Negotiates better rates.
Time-Saving Tip: A good broker can arrange finance in as little as 48 hours, cutting weeks off the normal mortgage process.
Lenders want to know how you’ll repay the loan. A strong exit strategy speeds up approval.
Tip: Investors who present a solid exit strategy upfront get faster approvals.
Use our Stamp Duty Calculator to estimate SDLT costs for your auction property.
Tip: Avoid these mistakes to secure finance quickly and avoid losing your deposit.
Investor: Sarah, an experienced landlord.
Property Type: Buy-to-Let flat at auction.
Auction Price: £250,000.
Finance Used: Bridging loan at 70% LTV.
Time to Funding: 5 days.
Lesson: Preparation and using the right lender helped Sarah secure finance in record time.
Ans: Most bridging lenders approve finance within 24–48 hours, with funds available in 5–10 days.
Ans: No, most lenders require a deposit of at least 25%. However, additional security (such as another property) may help you borrow more.
Ans: Not always. Some lenders offer non-status bridging loans, meaning credit history is not a major factor.
Ans: You may lose your 10% deposit and face legal action from the seller. This is why fast auction finance is crucial.
(C) 2025 Auction Finance is a trading name of Mortgage Knight Ltd