Buying at Property Auction
How auction buying works and how to have your finance ready before you bid.
- Why auctions appeal to investors and developers
- How to arrange finance before you bid
- A fictional, illustrative case study
Why buyers keep coming back to auctions
Auctions remain popular with investors and developers looking for property that needs work or sits outside the usual market, with the bonus of certainty: once the hammer falls, there is no gazumping and no chain to collapse.
Preparing to bid
- Research auction houses and catalogues for properties that fit your strategy.
- Attend as an observer first to get a feel for pace and bidding behaviour.
- Arrange finance in advance. A winning bid at a traditional auction is legally binding, usually with completion in 28 days. Modern-method auctions work differently, with a reservation fee and longer timescale.
- Have your solicitor review the legal pack before auction day: title, searches, special conditions and any extra fees payable by the buyer.
Financing An Auction Purchase
Because of the short deadline, many auction buyers use bridging finance and then refinance onto a mortgage once the purchase completes, especially for properties that are not yet mortgageable. Have bridging terms or a mortgage agreement in principle in place before auction day; it is essential, not a nice-to-have.
What to check before you bid
Set your maximum bid using the full cost: the price, the deposit and buyer's fees, stamp duty (including the 5% surcharge on additional properties), works and finance costs. Guide prices are a starting point, not a valuation. A survey or experienced eye before the auction can save an expensive surprise.
Ready to bid, ready to complete: a fictional case study
Before a Manchester auction, Freya arranged bridging finance in principle against a shortlist of three properties. When her preferred three-bed terrace sold to her for £145,000, well within budget, funds were released inside the 28-day deadline with no last-minute scramble.
Names, figures and circumstances are fictional and illustrative only. They do not represent an actual client of Our Mortgage Broker Limited.
Planning to bid at auction?
Speak to a CeMAP-qualified OMB adviser: whole-of-market advice, with any fee confirmed in writing before you proceed. Read more about auction finance.
More free guides
- Becoming a First-Time Landlord
- Bridging Loans: Speed & Certainty
- The Buy, Refurbish, Refinance Strategy
- Buy-to-Let Mortgages, Explained
- Commercial Mortgages, Demystified
- Development Finance in 2027
- First-Time Buyers: Your 2027 Roadmap
- Stamp Duty & Property Tax, Clearly Explained
- Property Licensing, Sorted
- Million-Pound-Plus Mortgages
- Build Your Property Power Team
- Private Bank Mortgages
- Conveyancing, Step by Step
- Protecting What You've Built
- Splitting Property Titles
Email me all 16 guides as PDFs
Your home may be repossessed if you do not keep up repayments on your mortgage. Most buy-to-let and commercial mortgages are not regulated by the Financial Conduct Authority. Our Mortgage Broker Limited is authorised and regulated by the Financial Conduct Authority (FRN 944663). Registered in England and Wales, company no. 11358646. Registered office: 23 Berkeley Square, Mayfair, London W1J 6HE. There may be a fee for mortgage advice: we may charge up to 1% of the loan amount, and our typical fee is £500. Your fee agreement sets out the exact fee and when it is payable (at decision in principle, application or mortgage offer); fees are not refundable once due. We usually also receive commission from the lender. This guide is general information only and is not personal advice. Case studies are fictional, illustrative examples and do not represent real clients. Rates, tax and regulatory information are correct as at October 2026 and may change, including at the Autumn Budget on 28 October 2026.