Auction bridging

Yes, you can get a bridging loan for an auction property, and it is one of the most common uses of bridging finance. Bridging loans are designed to meet 28-day auction completion deadlines, providing fast funding for un-mortgageable, vacant, or complex properties, provided there is a clear exit strategy such as sale or refinance.

Bridging loans can complete within an auction's 28-day deadline when the agreement in principle is in place and the legal pack has been reviewed before the auction, and the valuation and legal work start immediately after the hammer falls.

Short-term secured lending, usually between three and twenty-four months, used where timing matters more than cost: buying at auction, breaking a chain, or funding works before a property can be refinanced conventionally. Interest is materially higher than a term mortgage, and lending is granted against a credible exit: the sale or refinance that will repay it. No exit, no loan.

Bridging lenders look mainly at the security — its value and type — and the exit — how the loan will be repaid — along with the borrower's identity, credit history, experience for investors, and the purpose of the loan.

Re-bridging is refinancing an existing bridging loan with a new bridging loan on the same property, usually from a different lender, to give the borrower more time to complete the original exit, such as a sale, a remortgage or the end of a development. The new loan repays the old one in full, including any rolled-up interest, exit fee and extension or default charges, and starts a new term with its own fees and interest. Because those costs are added to the debt, the loan to value rises with each re-bridge. It differs from an extension, which keeps the same loan with the same lender for longer, and from remortgaging, which moves the debt onto a term mortgage.