Complete your auction purchase within the required timescale
When a property is sold at auction and the hammer falls, the buyer typically has 20 working days to complete. That is not enough time to arrange a conventional mortgage. Auction finance provides the short-term funding needed to complete on time, with a longer-term solution arranged in the weeks and months that follow.
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Properties sold at auction often fall into categories that conventional lenders find difficult: unmortgageable in current condition, unusual property types, short leases or complex title situations. Auction finance lenders are generally more flexible, but the exit route, the property and the borrower all still need to stack up.
Prepare before the auction, not after
Arranging finance after the hammer falls without any prior groundwork significantly increases risk. If the finance cannot be completed within 20 working days, you will lose your deposit and may face further financial consequences.
Good preparation before an auction typically means:
Having a decision in principle from a lender before bidding.
Understanding the maximum amount you can borrow against the property you are interested in.
Having solicitors instructed and ready to act immediately after the auction.
Understanding the full cost of the finance, not just the purchase price.
Having a clear exit route already identified.
We work with buyers before auctions to ensure that the finance groundwork is in place. This gives you clarity on what you can bid and the confidence that completion can happen within the required timeframe.
What lenders look at for auction finance
The property: type, condition, location and valuation
The loan to value (Ltv) against the purchase price and the current value
The exit route: sale of the property after improvement, or refinance once it meets conventional mortgage criteria
The borrower: background, experience and financial position
Legal: title, lease terms and any complications that could affect completion speed