Buying a property at Auction with a mortgage
Buying a home at Auction is becoming an increasingly popular choice. In fact, our data shows over a third of people are open to using Auction, rising to 57% among 18-34-year-olds*.
More buyers are learning that Auction offers a transparent and efficient way to secure a property. However, a common misconception is that Auction properties are limited to renovation projects or investment opportunities from cash-buyers.
In reality, there are a huge range of properties available, from city-centre flats and family homes to country cottages, church conversions, and even luxury properties worth millions. Whatever your budget or property preference, buying at Auction could be the ideal route for you, even if you plan to fund your purchase with a mortgage. Here’s what you need to know about buying a property at Auction with a mortgage.
What is the Modern Method of Auction?
The Modern Method of Auction (MMoA), also known as conditional Auction, is designed with mortgages in mind, making it accessible to a wider range of buyers. Unlike traditional Auction houses that require immediate payment in cash, MMoA allows buyers to secure a property with a mortgage (subject to lending criteria, affordability and survey), just as they would in a standard property purchase. With the 56-day completion timescales^, you’ll have enough time to arrange your finance. This method has several key advantages:
- A transparent and secure process – Online bidding ensures openness for both buyers and sellers.
- Mortgage-friendly transactions – Buyers can finance their purchase with a mortgage instead of needing cash upfront.
- Pre-vetted buyers and sellers – Reservation Fees and agreements help improve completion rates.
Since your Estate Agent or Auction provider will ask how you intend to fund the purchase, it’s advisable to speak with a mortgage advisor before entering the process. This is the same as when buying a home through Private Treaty (the way which most properties are bought and sold currently).
How buying at Auction works
One of the biggest advantages of buying a property at Auction is the level of information available upfront. Buyers receive a Buyer Information Pack, which typically includes:
- Local authority searches
- Water and drainage searches
- Mining searches (if applicable)
- Property information forms
- Fixture and fitting forms
- Title Register and Title Plan
In a traditional Private Treaty sale, much of this information is only gathered during the conveyancing process, often weeks after an offer is accepted. By contrast, Auction buyers have access to all relevant details before placing a bid, helping them make an informed decision and reducing the likelihood of sales falling through.
Costs to consider when buying at Auction
As with any property purchase, there are additional costs to factor in when buying at Auction. These may include:
- Solicitor fees – Legal expertise is essential to ensure a smooth process.
- Mortgage arrangement fees – If using a mortgage, check with your lender for any associated costs.
- Auction fees – such as Reservation Fees, which vary by provider.
Although buying a property always carries some degree of risk—such as finding that the home isn’t quite right for your needs—the Auction process provides a high level of transparency, giving buyers confidence in their investment.
Why consider buying at Auction?
Auction is an excellent option for buyers looking for a straightforward, secure, and efficient property purchase. With a broad selection of homes available, the ability to use a mortgage, and a structured process that reduces fall-through rates, it offers many advantages over traditional methods.
Whether you’re searching for a bargain, a unique property, or a straightforward buying experience, Auction could be the right choice for you. By preparing in advance, securing mortgage advice, and reviewing all available information, you can confidently navigate the process and find your ideal home at Auction.
Start your Auction property search today!