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Bridging / auction finance

Free, no-obligation consultation

No upfront fees

Access funds within 24 hours

25 years' finance experience

Access to 100+ lenders

What is bridging / auction finance?

How does a bridging loan work?

  • Commercial bridging is short-term finance required for a specific reason or project when other finance is not available.

  • It’s often used by property developers who need funds to complete a short-term building project and have a clear exit strategy, such as selling the property or refinancing into a long-term commercial mortgage.

  • Bridging finance is also used by people buying properties from auction, who are required to complete the purchase within a short time (usually 28 days) of the auction.

  • Loan terms are usually 3–12 months, sometimes up to 24 months. 

  • Capital and interest is usually rolled up into a single repayment once the property has been refinanced or sold.

Auction Hammer – for sale by property auction
Property developer with plans

Auction finance allows you to arrange the funding you require in advance with the lender giving you the flexibility to bid responsibly. A minimum 10% deposit is required to be paid on the day you win the auction, with the balance due within 28 days.

It’s important to remember that approval from lenders is conditional and you will have a set of criteria to follow for the property you are trying to win, although this is usually flexible for more experienced developers.

Potential auction buyers should draw up a shortlist of properties they are interested in, then present them to the lender. Repayment works in the same way as a standard bridging loan – principal and interest are rolled up and everything is paid back once the development / refurbishment has been completed and the property sold or refinanced into a longer-term mortgage loan.

Product overview

£50,000 – £20,000,000

No monthly repayments

Interest is tax-deductible

Rates from 0.4% per month

Up to 80% LTV

Up to 24-month term

Image by Sam Moqadam

Client case studies

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Featured case study: Manufacturing

A fast-growing design and manufacturing company reached out to ask us for help with sourcing £150,000 they needed to fulfil new orders. 


The company had impressive revenues, but because the director of the business had multiple liquidated companies, a lot of lenders were not happy to review the business. However, we spent time getting to know the business and created an attractive proposal focusing on the current business and planned progression, before presenting it to carefully selected lenders. 


We’re pleased to say that in just under a week, we managed to secure a £150,000 unsecured loan allowing the client to fulfil their new contracts and continue to grow. The client was over the moon!

How can we help your business?

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Where to find us

Clear Idea Finance

Saracens House

25 St Margaret’s Green

Ipswich, Suffolk


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Copyright © 2021 Clear Idea Finance Limited. Made of Cheddar.

"Clear Idea Finance" and "Clear Idea" are trading names of Clear Idea Finance Limited, registered in England and Wales, company number 12802771. Registered office address: Saracens House, 25 St Margaret’s Green, Ipswich, Suffolk, IP4 2BN. Clear Idea Finance Limited operates in accordance with the Data Protection Act 1998, ICO registration number ZA798967. A commercial mortgage loan is secured against property, which may be repossessed if you do not keep up your loan repayments. Clear Idea Finance Limited acts as a commercial finance advisor and credit broker and not a lender.