£650K Regulated Bridging Loan for Auction Purchase in Cambridge

A husband-and-wife team were looking to purchase their next family home at auction, where speed and flexibility are always critical. With the property requiring significant renovation before it could be lived in, and a four-week auction completion deadline, traditional mortgage finance wasn’t an option.

Clifton Private Finance helped them secure a £650K bridging facility at 0.69% per month, which enabled the clients to complete on time and move forward with confidence.

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The Scenario

The clients were purchasing a residential property at auction that required substantial renovation work and was not considered habitable at the point of purchase.

While they had a clear long-term plan to live in the property, the condition of the house meant that a standard residential mortgage was not available at purchase.

Given the auction timeframe, they had just four weeks to complete, making bridging finance the only viable solution.

The regulated facility was secured against:

• The auction purchase property
• Their existing residence, providing additional comfort to the lender and supporting the required loan size whilst also allowing them to obtain a lower interest rate

The intention was to renovate the new property, make it habitable, and then port their existing mortgage onto the new home, with the sale of the current residence fully repaying the bridging loan.

The Challenges

This case presented several complexities:

• Severe time pressure due to the auction completion deadline
• The property was not habitable, ruling out traditional lending routes
• During valuation, it emerged that part of the building was constructed using clunch, a soft limestone common in the region but considered non-standard construction. This had not been disclosed initially and immediately reduced the pool of lenders willing to proceed
• Many regulated bridging lenders are particularly cautious when dealing with auction purchases combined with non-standard construction, and deals often fall apart at this stage

At this point, the transaction required a rapid pivot to avoid collapse.

The Solution

Thanks to our strong lender relationships and whole-of-market expertise, we were able to quickly identify and approach a regulated bridging lender familiar with non-standard construction properties, particularly those common in the Cambridge area.

We represented the case with full transparency, clearly outlining the construction type, renovation plans, and exit strategy.

The lender was comfortable proceeding, offering a straight bridging loan rather than a phased drawdown, which suited the clients’ need to move quickly and manage the renovation themselves.

The final facility was structured as:

• £650K gross (£585K net)
• 0.69% interest per month
• Secured against both the purchase property and existing residence
• Regulated bridging, ensuring appropriate client protections

Throughout the process, we maintained close communication with the lender, valuers, solicitors, and the clients to keep momentum and meet the auction deadline.

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The Outcome

The loan completed within the required auction timeframe, allowing the clients to secure their new home and begin the renovations immediately.

Bridging finance gave them the flexibility to carry out the necessary renovation works before moving in, without being forced into rushed or compromised decisions.

A 12-month term gives them adequate time to find the right buyer and achieve maximum sale value.

By using bridging as a temporary solution, the clients will:

• Port their existing mortgage onto the renovated property once habitable, retaining its full value
• Sell their current home at an appropriate time, rather than under pressure, fully repaying the bridge
• Transition smoothly into their new residence with a clear, well-structured long-term plan

What could easily have become a failed auction purchase was successfully completed due to our ability to adapt quickly, reposition the deal, and secure lender support in a challenging, regulated scenario.