Auction — pricing factors (UK)
What lenders weigh when pricing auction cases — not live quotes. Use our calculators and speak to an FCA-authorised broker for firm-specific numbers.
Mortgage118 does not publish indicative rate bands. Lender pricing changes daily and depends on your profile.
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What lenders look at
These factors shape whether a auction case is accepted and how it is priced. They are not a quote.
- Strong financial position and credit history
- Adequate deposit and reserves
- Property investment experience preferred
- Clear exit strategy for the property
- Professional team in place
- Suitable property type and condition
For indicative numbers, use our mortgage calculators and compare brokers who specialise in auction.
What moves your rate up or down
These are the strongest factors lenders weigh when setting pricing.
- Fast completion within 28 days
- Specialist lenders with auction expertise
- Flexible lending criteria for auction properties
- Pre-approval available before auction
- Quick decision-making process
Fee breakdown
Common charges to plan for alongside the headline rate.
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
Rate FAQs
Quick answers to common pricing questions.
What is the typical auction deposit amount?+
Auction deposits are usually 10% of the purchase price and must be paid immediately after winning the bid. This is separate from your mortgage deposit and is typically non-refundable if you can't complete the purchase.
Can I get an auction mortgage with adverse credit?+
Some specialist lenders offer auction mortgages to borrowers with adverse credit, though the criteria may be stricter and rates higher. You'll typically need a larger deposit and may face additional checks.
What are the interest rates for auction mortgages?+
Auction mortgage rates typically range from 5.5-7%, higher than standard mortgages due to the increased risk and short completion times. Rates may vary based on your circumstances and the property type.
Can I get an auction mortgage for a commercial property?+
Yes, auction mortgages are available for commercial properties, though the criteria may be different from residential properties. You'll need to demonstrate the property's income potential and your experience with commercial investments.
Can I get an auction mortgage for a buy-to-let property?+
Yes, auction mortgages are available for buy-to-let properties, though you'll need to demonstrate rental income potential and your experience as a landlord. The criteria may be stricter than standard buy-to-let mortgages.