Auction

“I won at auction and my mortgage lender has pulled out”

If an auction mortgage falls through, a bridging loan is usually the only product that can still complete inside the 28-day deadline. It funds on the property as it stands and on a defined exit, rather than on the condition a term lender requires.

An illustrative situation, not a client case study. It describes the kind of enquiry this market sees. Any figures are examples, not a quotation, and no credit check or lender decision is involved in reading this.

Sound familiar?

You exchanged on the fall of the hammer and paid a 10% deposit
The lender has withdrawn, or the valuer has reported the property as unsuitable security
You have somewhere between one and three weeks left
Your solicitor has started warning you about losing the deposit

The situation

This is the single most common emergency enquiry in bridging. A buyer arranges a mortgage in principle before the auction, wins the lot, and then discovers that "in principle" was doing a lot of work. The valuer visits, reports no kitchen, damp, a short lease or a structural concern, and the lender withdraws.

At that point the contract is already exchanged. Failing to complete normally means forfeiting the 10% deposit, and the seller can pursue you for their costs and for any shortfall if the lot is resold for less. On a £200,000 purchase that is £20,000 gone before anything else.

Why the usual lenders say no

Mainstream lenders assess whether the property is habitable and mortgageable today, not what it will be after works.
Their process runs on a six to ten week timetable that cannot be compressed to fit a 28-day contract.
A retracted offer is rarely reversible — the same underwriter is being asked to overturn their own valuer.

What usually works

A bridge that completes to the deadline

Bridging lenders fund on the security and the exit, so an unmodernised property is not a problem. The valuation is instructed immediately and the legal work runs in parallel rather than sequentially.

Search indemnity instead of searches

Local authority searches can take weeks in some areas. Most bridging lenders accept indemnity insurance instead, which is frequently the difference between completing on day 26 and missing the deadline entirely.

Planning the exit at the same time

The bridge has to be repaid. We arrange the refinance or evidence the sale at the outset, so you are not solving the same problem again in ten months.

Roughly how the numbers look

Illustrative figures for this situation
Example hammer price	£200,000
Deposit already paid	£20,000
Balance to complete	£180,000
Typical gross facility at 70%	£140,000
Cash you still need to find	£40,000 plus fees and stamp duty

Lenders size the loan against the lower of the purchase price and the valuation, so paying above market value does not increase what you can borrow. These are examples to show the shape of a deal, not a quotation. Work out your own figures in the bridging calculator.

What we would need from you

The auction legal pack and the signed memorandum of sale
Confirmation of the completion deadline from your solicitor
Photo ID and proof of address for every borrower
Evidence of the deposit already paid and where it came from
Your exit: an agent’s appraisal for a sale, or a decision in principle for a refinance
A costed schedule of works if the property needs refurbishing

Things that catch people out

Do not assume an extension is available. Some contracts allow one on payment of interest to the seller; many do not.
Check whether your solicitor has done bridging work before. A conveyancer learning on your deadline is a real risk.
If the valuation comes in below the hammer price, you fund the difference in cash. Establish that figure on day one.

Questions we get asked

How quickly can a bridge complete after an auction?

It is normally arranged to the 28-day contractual deadline. The realistic constraints are the valuation slot and the solicitors on both sides, not the lender. A complete file submitted on day one is the single biggest factor.

Will a bridging lender fund a property with no kitchen or bathroom?

Yes. That is one of the main reasons bridging exists. The lender is looking at the value of the security and the credibility of your exit, not at whether the property is habitable today.

Can I still complete if I have less than two weeks left?

Sometimes, but it needs everything to align: an immediate valuation, title indemnity instead of searches, and a solicitor who can act at once. Tell us the exact deadline at the first conversation so we can be honest about whether it is achievable.

The product that usually fits

See how it works

Every case is different. A specialist will confirm what actually fits yours.

Rather talk now?

020 4525 4876

9:00am – 5:30pm, Monday to Friday

Keep reading

Related situations and guides

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Buying at auction: how to fund it in 28 days

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