Auction Finance Complete within 14 Days

Auction finance helps you complete on a property that was purchased at auction. Octagon Capital can help you secure up to 75% of the property value within 14 days or less.

  • Borrow £50,000 to £25 million
  • Residential, commercial, new builds and more
  • Borrow over 3 to 24 months
  • Up to 70% LTV regulated and 75% LTV non-regulated
  • Rates from 0.44% per month
  • All credit scores considered
  • Funded in 10 to 14 days, average completion from start to finish is 3-4 weeks

Need Auction Finance? Start Your Application Below

  • By submitting this form I agree to being contacted by SPF Short Term Finance and I have read and accept the Terms and Conditions.

We are proudly partnered with SPF Short Term Finance who will process your enquiry.

We are partnered with SPF Short Term Finance who will process your enquiry

How does Auction Finance Work?

OK, so you’ve found the place you wanted to bid on, done all your homework and now the big day of the auction has come and you have won the bid – fantastic! You pay your 10% deposit and now you have 28 days to find the rest of the money. If you have some savings or are selling an existing property to fund it, that is great, but if you have zero money left or need a little extra to fit the bill, this is where auction finance comes in.

At Octagon Capital, we work with a number of bridging lenders in the UK so that your requirements can be considered on an individual basis and we can find the right loan product for you.

We allow customers to borrow between £50,000 and £25 million and provided that you meet the criteria and complete all the final tasks,  you can receive the funds you need in typically 10 to 14 days so that you can complete on the property.

For more experienced and established developers, we can suggest lenders who can give you an ‘agreement in principle’ before you arrive – so you can have the finance ready before you even attend the auction.

Why Should I Apply for Auction Finance with Octagon Capital?

Octagon Capital is partnered with SPF Short Term Finance who work with over 40 auction finance lenders -and has already helped a number of investors and property developers buying at auction to secure funding within a short deadline.

When it comes to auction finance, we understand that speed and transparency is everything, so whether you want to speak to us before you go to auction or once you have won the property, we can present you with all the different options, most competitive rates and best practices.

Our team of advisors have dealt with all kinds of auction finance loans and auction bridging loans over the years – and can provide sound advice and guidance to maximise approval and funding within the given timeframe.


Our Auction Finance Lenders

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Use Our Auction Finance Calculator

Enter how much you need to borrow and how long for – and our team of advisors will come back to you quickly with some initial fees and quotes from across the market.

  • Please give us a call if you require more than £25,000,000

What are the Benefits of Buying Property at an Auction?

The main advantage of purchasing a property through an auction is the potential discount you can get. Whether the property has failed to sell, needs a lot of work or is probate and the family are looking to raise funds, if you catch the market at the right time, you could buy the same property at a 20 to 30% discount of the normal market value.

The process also appeals to the investor or individual that does not like to go through the lengths taken to get a mortgage, which involves heavy paperwork, meetings and several weeks of waiting to get a decision in principle and approval. However, with auctions, you simply have to provide a 10% deposit on the day and then you have up to 28 days to pay the outstanding balance, giving you the chance to raise money if necessary.

Once that gavel hits, you have a legal obligation to go ahead with the purchase. Whilst this might put pressure on you, in fact it means that your bid for a property cannot be gazumped by anyone else. This gives you real peace of mind that you deal is not going to fall through or get taken by another party and is another reason why some people prefer auctions.

If the property is for you and your family, there is the added bonus that you can move in quickly. After all, you have to complete within 28 days so you can practically move your stuff in already. No need to wait several weeks or months to move in like you would do with a regular property and mortgage.

What is The Criteria for Auction Finance?

As soon as you make an application, we will request more details about the property you have just won at the auction. We have the property valued by an appointed surveyor and discuss your future plans with the estate. Whether you plan to live in the new home permanently or wish to fix it up and re-sell it, will have an impact on the terms of the loan. Since your auction finance loan will be secured on the property, understanding its value and future value will be key to your application being approved.

If Octagon Capital puts you in touch with a lender that is regulated by the FCA, they will carry out various credit checks to get an idea of your repayment history for other loan products. You will also be required to provide proof of income and affordability, so we can get an idea of how much you can afford to repay each month and the best repayment method. If you have a monthly salary, perhaps you will be best suited for making monthly repayments but if you are a property investor and need to re-sell this home to generate income, we can look at rolling up the interest for you. For a regulated lender, the maximum loan-to-value (LTV) you can expect is 70%, so if you are looking to raise £500,000, the most you can borrow through our lenders will be £350,000 (so after your 10% deposit, you will have only 20% left to raise).

Am I Eligible for Auction Finance?

  • Property is located in UK, Scotland or Wales
  • You are limited company or household
  • The property is in fair or good condition (not sinking or abandoned)
  • You have plans for the property (buy-to-let, refurbish)
  • To have plans to repay in 3 to 24 months
  • All credit histories are considered

For non-regulated lenders or ‘non status’ as they are known, there are no credit or affordability checks required. Instead, the emphasis is on the value of your property, which of course, the lend may be able to repossess if you do not keep up with repayments (although this is a rare outcome). The non-status lenders we work with allow you to borrow up to 75% loan-to-value (LTV) which can help you if time is ticking and you need to reach your target.

What Happens After I Apply?

Based on the procedures of one of our lenders, if you wish to proceed with our initial offer, we will give you an official Offer in Principal (OIP). Once we receive the signed OIP we will liaise with our appointed RICS valuer to arrange an appointment with you to value the property.

Our panel valuers are instructed to produce reports within 72 hours so the process can be facilitated as quickly as possible, after all, we appreciate that you have a 28 day deadline.

We will also need to liaise with your solicitor and send them our checklist of requirements. Provided that the property valuation is up to scratch, our lawyers will send your lawyers the mortgage deed for signature. To finalise everything, you will need to visit your lawyers and provide at least one piece of photo identification and two pieces showing proof of residence (e.g utility bill and bank statement) as these are required to sign the mortgage deed. Once our lawyers receive this documentation, we are ready to go and your funds will be released so you can complete!

Auction Finance FAQs

Auction finance refers to the type of loan used to purchase a property from an auction. When you go to a property auction and win your desired property, you are required to pay 10% upfront on the day and then you have up to 28 days to come up with the remaining 90% to secure the deal or risk losing your deposit too.

Many households and investors will use a combination of savings and external investment, but auction finance is often used to fill the gap and help you secure the property within a tight deadline.

Both. Some potential buyers like to know what funding could be available before the auction, so that they can arrive and be fully prepared in terms of how much they can borrow and can push the button if they win the bid.

You can also apply after you have won the bid and are looking to complete in 28 days or sooner.

  • Residential properties
  • Commercial properties
  • Buy-to-let properties
  • Offices
  • Homes/Flats/Apartments
  • Shops/Retail Stores/High Street Stores
  • Land
  • Farms/Hotels/Guesthouses
  • Petrol Stations/Garages/Warehouses

When applying for auction finance, you need to provide proof of your successful bid and other key information such as:

  • Information about the property i.e address, value
  • Survey (this can be conducted by the lender or broker)
  • Financials – what funds you have available so far
  • Your plans for the property – resale, renovation or buy-to-let
  • Information about your limited company

You can borrow up to £25 million with auction finance from Octagon Capital, this usually relates to around 70% LTV and will take into consideration various factors such as your affordability, the potential value of the property and your track record.

You can borrow over 3 to 24 months, although some lenders may have different terms and there may be a different minimum (e.g 6 months) or a different maximum term (e.g 12 months).

Auction finance can be very useful if you are looking to raise funds and it is certainly popular for people with second properties, business people, property developers and investors.

As a homeowner, you may be able to sell your existing property and buy a new one through an auction, without using auction finance. You always have the option to use your own savings and any other investments.

Yes, auction finance for bad credit customers is available and our panel of lenders will always consider borrowers who may have been experienced defaults, arrears and CCJs.

Since auction finance is secured against a valuable asset, the lender will be using this as collateral, so if you cannot keep up with repayments, they can recover their costs through repossession.

Looking at the current and potential value of the property is key, since the lender may see a lot of promise and be interested to lend against something that you have had the insight to successfully purchase. With this in mind, a lot of auction finance lenders may be willing to take a view if you have a great proposition, even if you have bad credit. (See also bridging loans for bad credit)

Yes, your property is at risk of repossession if you cannot repay your auction finance loan at the end of the loan term (up to 24 months). You will have up to this time to repay the loan, either each month or rolled up at the end of the loan term. You may pay off the loan through renting it out or by selling the property at a higher profit.

There are always options such as refinancing at the end of the loan term and the lender will always try to work with you to avoid repossession, since this is usually a last resort.

Simply enter your details into our form and one of our experienced advisors will come back to you immediately. We require some basic information including the value of your property and the amount that you are looking to borrow. You can also call us on 0333 414 1491 or email us at

Speak To Our Expert Team

Octagon Capital is made up of an experienced team of associates. We are approachable, customer-focused and results driven – contact us today to see how we could help with your next property financing solution. Find out more about us here.