Auction Bridging Loan: £119K Secured in 18 Days for a Scottish Property Purchase

A client approached Clifton Private Finance after successfully purchasing a property at auction in Scotland and needing to complete within the auction house's strict 20-day deadline. To avoid losing the property and associated deposit, he required fast auction bridging finance that could be arranged quickly and efficiently.

Within 18 days of application, Clifton Private Finance secured a £119k bridging loan, enabling him to complete the purchase and relocate closer to his family.

Scenario: Auction Property Purchased with a 20-Day Completion Deadline

The client had successfully purchased a property at auction in Scotland and was relocating from England to be closer to his family. The auction purchase came with a strict 20-day completion deadline, leaving very little room for delays.

To maximise speed, we secured the bridging loan against the client's existing property in Barnsley rather than the Scottish purchase, with an additional charge on the client’s partner’s property to provide additional comfort to the lender. The planned exit was the sale of the client’s Barnsley property.

Using two English properties as security avoided the additional delays involved in securing the loan against the auction property in Scotland.

The Challenge: Completing an Auction Purchase Across England and Scotland

Auction purchases require transactions to move quickly, and this case involved added legal complexity because the properties and professional advisers were in two different countries. We needed to:

• Secure funding within the 20-day auction completion deadline
• Find a lender capable of moving quickly enough to meet the timescale
• Coordinate the lender's legal team in England with conveyancers handling the Scottish purchase
• Structure the security to avoid unnecessary delays caused by securing against both properties
• Arrange independent legal advice for the client's mother, who was moving with him but was not benefiting directly from the loan

The Solution: How We Structured the £119K Auction Bridging Loan Using Existing Property Security to Accelerate Completion

With only a small number of lenders able to accommodate the required timeframe, speed and execution were critical. We identified a suitable bridging lender and structured the facility against the client's existing Barnsley property, simplifying the security process and avoiding the need for additional legal work on the Scottish property purchase.

Throughout the transaction, we maintained regular contact with all parties and set up a group email involving the lender, solicitors, and conveyancers to keep communication clear and prevent delays. We also arranged the independent legal advice required for the client's mother and continued to chase each party through the legal stage.

The resulting bridging loan facility was secured at 0.54%, with the transaction completing just 18 days after application.

The Outcome

The £119k bridging facility enabled the client to complete his Scottish auction purchase within the required timeframe and proceed with his relocation.

By keeping all parties aligned and actively managing the transaction through to completion, we avoided the delays that can occur when multiple legal teams are involved.

The case demonstrated the importance of hands-on broker involvement beyond securing the finance, particularly when an auction deadline leaves no room for the transaction to go stale.

Why Use Bridging Finance for an Auction Property Purchase?

Property auctions often require buyers to complete within 20 to 28 days of the auction ending. Traditional mortgages may not be arranged quickly enough, particularly where multiple properties, legal teams or jurisdictions are involved.

Auction bridging finance can help buyers:

• Complete within auction deadlines
• Avoid losing auction deposits
• Secure properties before arranging long-term finance
• Use existing property equity to fund purchases
• Purchase properties that may not meet mainstream mortgage criteria