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Auction mortgages
Specialist mortgages for auction property purchases, providing quick access to funds for time-sensitive auction transactions. These mortgages often require fast completion and may have different criteria than standard purchases.
Reviewed by David Sampson, Founder & Director
What is an auction mortgage?
Auction finance provides fast-turnaround funding for properties purchased at auction, where buyers must typically complete within 28 days of the hammer falling. Bridging loans are the most common form of auction finance, offering rapid approval and drawdown to meet tight auction deadlines.
How does an auction mortgage work?
1
Initial Enquiry
Same dayDiscuss urgency, property and exit strategy
2
Indicative Terms
24-48 hoursReceive outline terms and estimated costs
3
Full Application
1-2 daysSubmit documents and property details
4
Valuation
3-5 daysFast-track property valuation arranged
5
Legal Review
1-2 weeksSolicitors review title and prepare documentation
6
Completion
2-4 weeksFunds released, often faster for urgent cases
What do lenders look for on auction mortgages?
Borrower profile
- Strong financial position and credit history
- Adequate deposit and reserves
- Property investment experience preferred
- Clear exit strategy for the property
- Professional team in place
Property requirements
- Suitable property type and condition
- Good location and market value
- Clear title and legal ownership
- Realistic valuation and market conditions
- Adequate insurance coverage
What fees come with an auction mortgage?
Arrangement Fee
Facility fee
1.5% - 2%
of loan amount
Valuation Fee
Fast-track property valuation
£500 - £2,000
expedited service
Legal Fees
Dual representation possible
£1,000 - £2,500
both sides
Exit Fee
Charged on redemption
0% - 1.5%
varies by lender
Broker Fee
Bridging arrangement
0.5% - 1.5%
on completion
Fees vary by lender. Advisers provide a breakdown before you proceed. Mortgage118 does not quote fees.
Resources
- FCA Register — Check a firm is authorised
- MoneyHelper — Free, impartial mortgage help
- RICS — Surveyors and property standards
FAQs
Related Articles
Practical guides and explainers from our blog — relevant to this mortgage type.
Also see
Related mortgage types
Mortgage118 is a directory of FCA-authorised advisers, not a lender. We do not publish live rates. Confirm criteria with an authorised broker before you apply.
Important: Your home may be repossessed if you do not keep up repayments on your mortgage. Information on this page is for general guidance only and does not constitute financial advice.Always verify details directly and seek independent advice before making financial decisions.