Buying a property at auction can be a quicker and more direct way to secure a home or investment. It’s often appealing to buyers hoping to find a bargain or avoid the drawn-out nature of private sales. But while the process can be fast, it’s also very different from the usual way of buying a house.
To succeed, you’ll need to prepare well, understand the legal steps, and act quickly. There’s less room for hesitation or negotiation once the bidding begins.
In this guide, we’ll walk you through how to buy a house at auction. We’ll cover everything from understanding how auctions work, to securing finance and completing the sale. Whether you’re a first-time buyer or exploring alternative ways to purchase a home, this step-by-step guide will help you approach the auction process with confidence.
A house auction is a way of selling property where interested buyers bid against each other. The highest bidder at the end of the auction secures the purchase, provided the bidding meets or exceeds the seller’s minimum price.
If you’re wondering how do house auctions work, the process starts with the release of an auction catalogue. This contains details of all the properties for sale, including guide prices, locations, and descriptions. The guide price gives a rough idea of what the property might sell for, but it’s not a fixed figure.
You can then arrange to view the property and request the legal pack. This pack contains important documents such as title deeds, searches (learn how long property searches take), lease information, and any special terms or conditions set by the seller.
On auction day, bidding takes place in person or online. The auctioneer starts with an opening bid and continues until no higher offers are made. If the final bid reaches or exceeds the reserve price (the minimum the seller will accept), the property is sold.
There are two common types of property auctions:
Also known as traditional auctions, these require the exchange of contracts immediately when the hammer falls. A 10% deposit is paid on the day, with the completion date usually set 28 days later.
Sometimes called modern method auctions, these give the winning bidder an exclusive period (often 28 days) to exchange contracts. This structure provides more time to arrange a mortgage or finalise due diligence, but still demands a fast turnaround.
Whether you’re attending in person or bidding online, understanding how does a house auction work is essential to avoid surprises. The process is fast, and preparation is key, especially when buying with a mortgage.
Buying at auction moves quickly. To be ready to bid, you’ll need to put in work well before the auction date. This means researching properties, understanding the legal risks, and making sure your finances are in place. Here’s how to prepare properly.
The first step is to read the auction catalogue carefully. Each listing will include a guide price, property details, and notes on whether it’s being sold unconditionally or conditionally. The guide price is not a final sale price – it’s a starting point for interest.
Where possible, book a viewing of any property you’re serious about. Some auction properties are vacant, while others may be tenanted or need renovation. Look for signs of structural damage, damp, or anything that might affect the property’s market value – or your ability to get a mortgage.
Remember, auction purchases are legally binding. Once the hammer falls, there's no turning back, so knowing exactly what you're bidding on is crucial.
Before bidding, you must read the legal pack for the property. This pack is prepared by the seller’s solicitor and includes documents like:
Get one of our conveyancing solicitor’s to review the pack for you. They’ll spot any legal red flags that might not be obvious — for example, an unusually short lease, missing rights of way, or restrictive covenants.
Getting legal advice before an auction purchase can save you from costly surprises. If anything in the legal pack looks unusual or concerning, your solicitor can explain it and help you decide whether to proceed.
At auction, you must pay a 10% deposit immediately if your bid wins. You then have around 28 days to complete the purchase. That makes it vital to have your finances in place before you bid.
If you’re planning on buying a property at auction with a mortgage, speak to a broker or lender well in advance. You’ll usually need a mortgage in principle before the auction. The lender must also be able to work within the tight auction timeframe.
Because some lenders won’t finance properties with structural issues or unusual construction, it's important to choose a lender experienced in buying at auction with a mortgage.
If you're unsure whether your mortgage will be approved in time, look into bridging loans or auction finance as a short-term backup. These can help secure the property while you arrange long-term funding.
Yes, you can buy a house at auction with a mortgage, but it takes careful planning. Auctions move quickly. Once your bid is accepted, you typically have 28 days to complete the sale. That leaves little time for lenders to process your application, carry out valuations, and release funds.
Start by getting a mortgage agreement in principle. This confirms how much you could borrow, based on your financial situation. While it’s not a guarantee, it shows you're serious and gives confidence that finance is achievable.
Before bidding, speak to your mortgage advisor or lender and explain that you’re buying at auction. Ask them about their auction timeframes. Some lenders won’t be able to move fast enough, especially if a full property valuation is needed.
Not all lenders are comfortable with auction properties. Some may refuse mortgages on homes that:
Make sure the property you're bidding on fits the lender’s criteria. If not, your application may be rejected, and you could lose your deposit.
If there’s a risk your mortgage might not be approved in time, look into bridging loans or auction finance. These short-term options can provide the funds to complete the purchase quickly. This will give you time to arrange a traditional mortgage later or even release equity from your home as a long-term funding option.
Buying auction property with a mortgage is possible, but success depends on preparation. Have your paperwork ready, speak to the right lender early, and be realistic about time limits. A mortgage broker with auction experience can make the process smoother and reduce risk.
Whether you're attending in person or bidding online, the auction process is fast-paced and final. Knowing how it works can help you stay calm and in control.
Before bidding, you’ll need to register with the auction house. This usually involves providing proof of identity and funds, and agreeing to the auction terms. If bidding online, you may also need to upload documents in advance and set up a secure bidding account.
Once registered, you’ll receive a bidding number or access to the live bidding platform. Make sure you’ve also reviewed the auction catalogue, visited the property (if possible), and had the legal pack reviewed.
On auction day, each property is presented by the auctioneer. They’ll start the bidding at or below the guide price and accept increasing bids until no further offers are made. If the reserve price is met (the seller’s minimum acceptable amount), the property is sold to the highest bidder.
The moment the hammer falls, contracts are considered exchanged. You can’t change your mind or renegotiate. That’s why it’s essential to have finances ready and to fully understand the legal pack beforehand.
In online auctions, bidding may be time-limited or extend slightly if bids keep coming in. You’ll still be legally bound by the result, so treat online bidding with the same care as attending in person.
Before bidding, set a firm maximum bid based on your budget and any finance agreements. It’s easy to get caught up in the moment and overpay, especially in a competitive room.
How to buy an auction house isn’t just about winning the bid. It’s about doing so at the right price and within your financial limits. Stay focused, and remember the legal and financial obligations begin immediately once you’re the highest bidder.
Winning a property at auction is exciting. But it also marks the start of a legally binding process. From the moment the auctioneer's hammer falls, you’re committed to buying the property under the conditions set out in the legal pack.
At the fall of the hammer, contracts are considered exchanged. This means you're now legally obliged to complete the purchase. You must pay a 10% deposit straight away. Either on-site or through a bank transfer if bidding online.
If you fail to pay the deposit immediately, or later fail to complete the purchase, you risk losing your deposit and may face further legal action from the seller.
In most cases, completion after auction is required within 28 days of the auction. This is shorter than standard property purchases and leaves little room for delays. In unconditional auctions, the timeline is fixed and enforced. Conditional auctions may give you more flexibility, but you’ll still need to move quickly.
Once you’ve won the bid, contact your conveyancing solicitor and mortgage lender (or broker) without delay. If you're unsure what conveyancing involves, read our guide to the conveyancing process to understand what happens next.
Provide all documents and instructions they need. There’s no time to waste. Delays can result in penalties or even losing the property.
Missing the completion date can also mean you lose your deposit and may be liable for the seller’s costs. That’s why preparation before the auction is just as important as speed after it.
The key takeaway? When you win at auction, exchange of contracts happens instantly — and the countdown to completion begins. Being organised and proactive makes all the difference.
Buying a house at auction has become more popular in recent years, especially for those looking for a quicker way onto the property ladder or hoping to grab a good deal. But while auctions can offer clear advantages, they also come with challenges. Here's a balanced look at both sides.
Auction properties are often priced to attract interest. The guide price is usually lower than market value. This can give buyers the chance to secure a home or investment at a competitive price. Especially if bidding interest is low, this could also impact your eligibility for claiming back stamp duty (depending on your situation).
Buying at auction is much faster than a private sale. In unconditional auctions, the exchange of contracts happens immediately, and completion typically takes place within 28 days. There's no long chain, no back-and-forth offers, and far fewer delays.
Unlike private treaty sales, auction sales are less likely to fall through. Once the hammer falls, the deal is legally binding. This reduces the risk of gazumping or buyers pulling out at the last minute.
Auctions move quickly, and it’s easy to get swept up in the moment. Without a strict bidding limit, you could end up overpaying for the property, especially if there's strong competition in the room or online.
There’s often less time to carry out inspections or arrange surveys. Legal packs are provided in advance, but buyers must act fast to have them reviewed. Missing crucial details could result in unexpected costs later.
If you're buying a house at auction with a mortgage, the short time between exchange and completion can cause problems. Lenders need time for valuations and approval, and delays can lead to serious financial consequences if the deal can’t be completed in time.
FAQ’s
Yes, you can buy a house at auction with a mortgage, but you must prepare in advance. Most auctions require completion within 28 days, so you need a mortgage agreement in principle before bidding. You should also confirm your lender supports auction purchases and can meet the strict timeframes. If there’s any doubt, consider arranging a bridging loan to meet the deadline and refinance later.
The guide price is the starting point for bidding and gives an indication of the seller’s expectations. The reserve price is the minimum amount the seller is willing to accept. If bidding doesn’t reach the reserve, the property may not sell. Guide prices are public; reserve prices are usually confidential.
A legal pack typically includes the title register, property plan, searches, leasehold details (if applicable), and any special conditions of sale. It may also contain environmental reports, tenancy agreements, or planning permissions. Always have a conveyancing solicitor review the legal pack before bidding to avoid costly surprises.
Most unconditional auctions require you to complete the purchase within 28 days of the auction. Conditional auctions may allow up to 56 days, but you must still act quickly. Failing to complete on time can result in losing your 10% deposit and being liable for additional costs.
If your mortgage isn’t finalised in time, you risk losing your deposit and may face legal penalties. To avoid this, ensure your lender is auction-ready and act fast after winning. If there's any uncertainty, arrange auction finance or a bridging loan before the auction to cover the short-term gap.
Yes, first-time buyers can purchase property at auction, but they must be well-prepared. You’ll need a mortgage in principle, a solicitor to review the legal pack, and access to a 10% deposit on the day. Auctions move quickly, so understanding the process and having expert support is crucial.
Key risks include buying without fully understanding the legal or structural condition, overpaying due to competitive bidding, and failing to secure finance within the deadline. Always inspect the property, review the legal pack, and confirm mortgage arrangements in advance to reduce these risks.
Buying a property at auction can be a smart and efficient way to secure your next home or investment. The process is faster than traditional property sales, often with fewer complications. But success relies on one key factor: preparation.
Understanding how to buy a house at auction, from reviewing the legal pack to arranging finance, helps you avoid costly mistakes. You’ll need to act quickly, stay within your budget, and have the right team around you.
Working with an experienced conveyancing solicitor is essential. Legal advice before bidding ensures you know exactly what you’re committing to. At TBI Solicitors, we support buyers through every stage of the auction process, helping you move forward with confidence.
If you’re considering buying at auction, get in touch with our team today for trusted legal guidance tailored to your needs
