How much can I borrow?

Usually up to 70–75% of the purchase price or valuation, whichever is lower. Some lenders go to 80% for light refurbishment.

What does bridging cost?

Interest is charged monthly. Recent cases we've placed have ranged from around 0.70% to 1.15% a month, plus arrangement, valuation and legal fees. The guide includes a worked example.

Can you fund unmortgageable properties?

Often, yes. Bridging lenders will lend on properties that need work, as long as there is a clear plan to refinance or sell.

What do lenders need from me?

The legal pack, ID, proof of your deposit and contribution, and a clear exit plan. The guide has a full checklist.

What about Modern Method of Auction?

You'll pay a reservation fee and usually have 56 days to complete. The same rule applies: line up your funding before you bid.

Will I live in the property?

If you or a close family member will live there, the loan is regulated. We will refer you to an FCA-authorised firm.

Auction Finance

Auction finance, ready before the hammer falls

Bridging finance for property investors buying at auction, with a straightforward view of what's fundable, usually the same day.

Get the free buyer's guide Book a Funding Strategy Review

28 days goes quickly

At a traditional auction, the hammer is exchange of contracts. You usually have 28 days to complete, and if you miss the deadline, you can lose your deposit and face a claim for the seller's losses.

A standard mortgage rarely completes in 28 days, and many auction lots can't be mortgaged as they stand. That's why most financed auction purchases use bridging finance, and why it needs to be lined up before you bid.

Buying a property that needs work? Read about refurbishment bridging.

How DGL helps auction buyers

Before you bid

An agreement in principle for your maximum bid, so you know where you stand.

The legal pack

We check the pack and lot details with lenders early, so problems surface before the hammer, not after.

The right lender

Matched to your property and your timescale, able to complete inside the auction deadline.

The exit

We line up your refinance or sale alongside the bridge, so you're never left with expensive short-term debt.

Recent example

Funding in place, fast

We arranged a £750k bridge (65% of the purchase price) to secure a £1.15m light industrial park in West Yorkshire, then lined up term refinance terms once the client had re-let the units.

How it works

1
Tell us about the lot: the address, the guide price and your plans for the property.
2
We give you a straightforward view of what's fundable and an agreement in principle.
3
You bid with confidence, knowing your maximum.
4
After the hammer, we submit the full application and instruct the valuation.
5
The lender completes inside your deadline, and we line up the exit.

Frequently asked questions

Cover of Auction Finance: A Buyer's Guide

Free guide: Auction Finance, A Buyer's Guide

Everything you need before auction day: the 28-day deadline, what bridging costs, the legal pack red flags that stop lenders, and a pre-auction checklist.

DGL Commercial Finance Ltd is not authorised or regulated by the Financial Conduct Authority. We arrange unregulated finance for property investors, developers and businesses only. Where a loan would be regulated, we will refer you to an FCA-authorised firm. All finance is subject to status, valuation and lender approval. Your property may be repossessed if you do not keep up repayments on a loan secured on it.