Buying A House in the UK at Auction?

Buying a house at auction is different from buying a house through a real estate agency. The speed and Auction terms can make the Auction process a little daunting. However, let’s explore some of the things that you can expect to encounter at an Auction.

One of the biggest differences in buying a property at Auction, versus from a Real Estate Agency is that once your bid has been accepted, you are basically tied to the property, and can expect to pay a minimum of 10% property value as the deposit.


Usually, this would mean arranging a loan from a lender; speaking to a broker may be a good idea as they can help with a decision in principle and bridging loans. Using an experienced broker for Auction lending is important and they will have knowledge about the market and which lenders are likely to give out loans for Auction purchases.

However, if you are a cash buyer, it would be a good idea to check transfer, and credit card limits that your bank has in place so that you are able to pay for the deposit on the day.

Another thing to bear in mind, once you have paid the deposit, is that you usually have up to 28 days to complete the purchase or you could forfeit the deposit and any other fees that you may have paid. This is where having all your ducks in a row comes in handy.

Researching properties listed in Auction brochures, will not only give you an idea of where a seller would like the bidding to start from (guide price), but usually adding another 8-10% on top of that figure may give you a good indication of the reserve (minimum price the seller will sell at) price that the buyer has.


Prior to going to the Auction house to start your bidding. If it is possible we would suggest, arranging a visit to see the property in person.

We would also suggest getting a surveyor to evaluate the property.


We would also recommend speaking to a solicitor and getting some advice about the Auction property. If there are legal packs available ask your solicitor to look over them.

Sometimes properties or land may have covenants attached to them, so understanding any risks associated with the purchase is a good idea. The legal packs will also show any searches.

If however there are no legal packs, it would be a good idea to reach out to the Auction house and ask them to request one from the seller.

Need Auction Finance

Interested in Auction Finance? Journey Mortgages can help you with loans for Auction properties. Get in touch via our contact section and we will be happy to take look at what is available.

Attention: Late repayments can cause you serious money problems. For help go to

Leave a comment