How to finance an auction property

Commercial Acceptances is the proven source if you need an urgent bridging loan for an auction purchase. Incorporated in 1983, we have decades of experience to draw on. We understand the auction market and know how to process loan applications quickly.

Property Auction Finance

Buying at auction is a secure and quick way to purchase a property. Auctions provide certainty as the seller cannot withdraw, nor is it possible for any kind of gazumping to take place. You, as the successful bidder, are legally committed to pay the agreed price and complete the purchase—normally within 28 days.

The transaction is legally binding, and contracts will be exchanged at the auction. From beginning to end, you benefit from fixed timescales, enabling you to make arrangements based on pre-determined completion dates. Although legal packs are available on the day of the auction, you should download a property’s information from the auction house’s website in advance. Then, you and your legal representatives should review it in detail before making a bid. Furthermore, we strongly recommended you carry out a full investigation and survey of any lot in which you are interested.

Any auction purchase takes place under the assumption that you have read and understood all the documentation and terms of contract.

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Before the auction

  • Learn which auctions include properties in the areas you are interested in. Many auctioneers will require that you register with them prior to the auction if you intend to bid
  • Research the properties being offered at auction and identify those that are of interest
  • Arrange a viewing of the property/ies and ask in-depth questions. Bring your contractor or building surveyor to get an idea of refurbishment or development costs
  • Consider arranging a Valuation Report or Structural Survey to identify any defects and to provide a valuation
  • Review the legal pack with your legal representatives
  • Set your budget and costings
  • Arrange your auction finance

At auction

  • Arrive early and read the “Addendum” provided by the auctioneers, which may have additional information or changes to a lot. Make sure you understand any alterations to Conditions of Sale and Notices as they could alter your decision to buy the property
  • Make sure the auctioneer can see you; your bidding should be clear and concise
  • Keep calm and keep to your budget
  • If your bid is successful, you will pay a 10% deposit and any auction fees at the auction

Arranging bridging finance for auction property

Contact CA before the auction. Our experienced Lending Managers can offer you a quick decision in principle and provide you with Heads of Terms ready for the auction. All lending is conditional on receipt of a satisfactory valuation report and a clear report on title from CA’s solicitors. It is possible and recommended to complete this work prior to auction but this may result in abortive expenditure if you are not successful at auction. You can then bid in confidence with precise knowledge of your budget. You pay a 10% deposit at auction with the residual balance on the contractual completion date.

Following a successful bid, your Lending Manager will continue to liaise with you throughout the loan process and keep you informed at all times.

Meeting the 28-day deadline


Auction finance relies on all parties working together to meet the contractual deadline. Therefore, CA selects its panel of valuers and solicitors carefully, based on their proven speed, efficiency and quality of service.


When instructed to proceed, CA will immediately appoint an independent valuer to visit the property to provide a report and valuation. They will confirm the property’s value, its condition and highlight any potential issues that may need further specialist investigation—such as structural defects, dry rot, rising damp or Japanese Knotweed.


We will similarly appoint one of our panel solicitors once we have been instructed. In turn, they will contact your solicitor to provide a list of Standard Mortgage enquiries. Your solicitor is responsible for providing replies in good time for completion. We strongly advise you to nominate a firm with good knowledge and experience in dealing with secured lending finance and one that has a minimum of three partners.


Throughout the process, we never let the pace drop. You can expect the valuation report to be returned usually within 72 hours of the inspection. If all is as expected, CA’s Internal Credit department formally sanction the loan application and the team will issue an offer letter to your solicitor and our own.


About your CA bridging loan for auction property

Your auction bridging finance provides:

  • Flexibility
  • Fast turnaround
  • Short-term finance for up to 12 months
  • Funding for residential, commercial and mixed-use property
  • Up to 70% loan-to-value against 180-day market value
  • Monthly interest rates from 0.75%
  • No arrangement, exit or early repayment fees
  • Your own dedicated Lending Manager who looks after your loan from start to finish

Get a fast response on finance for buying property at auction

Find out more by telephoning 020 3857 6350 or emailing us at and speak to a member of our lending team today.

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