Can you get a mortgage on an auction property?

Yes, an auction property can be bought with a mortgage, as long as the lender can value the property, check the legal pack and release the money before the completion deadline. The difficulty is time, because traditional auctions have short deadlines and some properties sold at auction are not suitable for a standard mortgage.

At a traditional auction, contracts are exchanged when the hammer falls. The buyer pays a deposit of at least 10% on the day and completion is due 20 business days later unless the special conditions set another date (RICS Common Auction Conditions, 4th edition, accessed 20 Oct 2026). Missing completion can mean losing the deposit.

Mortgage applications often take several weeks from application to offer, and the valuation and legal work can take longer for unusual properties. At a traditional auction this leaves little room for delay, so buyers using a mortgage usually apply for an agreement in principle and speak to the lender before bidding, not after.

Modern method auctions, sometimes called conditional auctions, usually allow longer to exchange and complete, which makes a standard mortgage more realistic. The buyer often pays a non-refundable reservation fee as well as a deposit, and the terms are set out in the auction pack.

Online auctions can follow either method. The terms for each lot, including the deadline and any extra fees, are in the legal pack and special conditions, and they apply to everyone who bids.

A standard mortgage lender will only lend on a property that is habitable and in reasonable condition, with an acceptable title. Many lots are at auction because they fail one of these tests, for example with no working kitchen or bathroom, structural problems, a short lease or unusual construction, and mainstream lenders will decline them.

For these lots, buyers usually use bridging or auction finance, refurbish the property and refinance onto a mortgage once it qualifies. Lots in good condition with a clean title are more likely to suit a standard mortgage, if the timing works.

How lenders treat auction purchases across all of these cases is covered in the auction mortgages guide, which also explains deposits and costs.

Bridging finance is the most common way to fund an auction purchase that a mortgage cannot complete in time. A bridging loan can be agreed in principle before the auction and completed quickly after it, because lenders focus on the property and the exit rather than a long affordability process.

Many buyers arrange a bridge as a backup even when they hope to use a mortgage, so a delay with the mortgage lender does not put the deposit at risk.

The bridge is repaid by selling the property or by refinancing onto a longer-term mortgage once it is mortgageable. Bridging costs more than a mortgage, so the total cost needs to be set against the value it unlocks. How auction bridging works is explained on the auction finance page.

The deposit is due on the day of a traditional auction and is usually at least 10% of the price (RICS Common Auction Conditions, 4th edition, accessed 20 Oct 2026). It comes from the buyer's own funds, because the loan is only released on completion.

Auction houses also charge buyer's fees, set out in the auction pack. Stamp Duty Land Tax or its equivalent applies to auction purchases as to other purchases, and legal, survey and valuation fees add to the cost. Special conditions can include extra costs such as the seller's legal fees or arrears, so the legal pack needs checking before setting a maximum bid.

Before bidding, buyers usually read the legal pack with a solicitor, view the property, arrange a survey where possible and get funding agreed in principle. The legal pack shows the title, searches, leases and special conditions, which can change both the cost and what a lender will accept as security.

Setting a maximum bid that allows for all fees and works, and confirming that the lender can complete in time, reduces the risk of losing the deposit. Brokers who arrange auction purchases can be compared on the auction mortgage brokers page.