Can I get a mortgage for an auction property?
Yes — it is possible to use a mortgage to buy an auction property, but it comes with important limitations and risks. Most auctions require you to complete within 14 or 28 days of the auction date, so the timing is extremely tight for a standard mortgage application. If your mortgage is not ready in time, you could lose your 10% deposit, be liable for interest or penalties, and even face legal action for breach of contract.
CAN I USE A STANDARD RESIDENTIAL MORTGAGE?
It depends on the property and lender – some auction properties are mortgageable, but others may be refused due to:
- Short leases
- Structural defects
- Non-standard construction
- Missing planning or building control documentation
- Uninhabitable condition
Many lenders also won’t release funds without a full legal review, which may not be completed in time.
If you’re relying on a mortgage, you need to ensure:
- You have a decision in principle (DIP) before bidding.
- The legal pack has been reviewed in advance to identify any red flags.
- You are able to meet the lender’s valuation and underwriting requirements quickly.
WHAT ARE THE RISKS?
- If the lender down-values the property, you may not receive the full loan.
- If there is any legal issue with the title or condition, the mortgage could be refused.
- Mortgage lenders often need a valuation survey, which can delay approval.
- If you can’t complete on time, you will likely lose your deposit, and the seller could claim damages.
WHAT ARE THE ALTERNATIVES?
Many auction buyers use bridging finance instead:
- Faster to arrange than a traditional mortgage.
- Can be used to secure the property first, with a view to refinancing later.
- Usually more expensive than a mortgage but avoids delays and risk of default.
We can recommend finance brokers and assist with the legal documentation needed to complete quickly with either route.
SUMMARY
You can get a mortgage for an auction property — but only if you’re prepared. Timing is critical, and legal issues in the auction pack can cause lenders to decline or delay. At Versus Law, we
work closely with mortgage lenders and bridging finance providers to make sure your deal progresses smoothly and legally.










