Can you buy a property at auction with a mortgage?

The UK auction property market offers a unique and exciting opportunity because properties that are sold through auctions are typically priced below market value, attracting a range of buyers.

Auctions are popular for their transparency and speed, allowing buyers to complete transactions quickly without a lengthy negotiation process.

Firstly, it's important to note that most mortgage lenders will not lend on properties that are in poor condition or require significant renovation work. Therefore, if you are planning to buy a property at auction with a mortgage, you will need to ensure that the property is mortgageable and meets the lender's criteria.

Secondly, if you are using a mortgage to buy at auction, you will need to have your mortgage in principle arranged before the auction, and for complete certainty, a mortgage offer. This will allow you to bid with confidence and ensure that you have the funds available to complete the purchase.

Finally, it's worth noting that the completion time for buying a property at auction is typically much shorter than a traditional sale, usually around 28 - 42 days. So it's important to ensure that your mortgage lender can complete the necessary checks and paperwork within this timeframe to avoid any delays.

In summary, buying a property at auction with a mortgage is possible, but it's essential to do your research, have your mortgage in principle arranged before the auction, and ensure that the property meets the lender's criteria.

If you require further advice regarding mortgages, you can speak to our partners at Mortgage Scout. They provide property investors, landlords and home movers access to over 12,000 mortgages and 90 lenders through an award-winning trusted service.

You may have to pay an early repayment charge to your existing lender if you remortgage.
Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances.
The fee is up to 1%, but a typical fee is 0.3% of the amount borrowed.
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