What happens if my mortgage doesn’t come through in time?
If your mortgage doesn’t complete in time for your auction purchase, the consequences can be severe. Remember: when you buy at auction, contracts are legally exchanged as soon as the hammer falls. From that moment, you are contractually committed to complete within the time stated in the auction conditions — usually 14 or 28 days.
If your mortgage funds aren’t ready by the completion deadline, you risk:
- Losing your 10% deposit
- Being charged daily interest penalties
- Facing legal action or being sued for damages by the seller
WHAT ARE YOUR LEGAL OBLIGATIONS?
Once the contract is exchanged at auction, you are obliged to complete the purchase — regardless of how you are funding it. The seller is not required to extend your deadline or wait for your lender.
Your mortgage lender may delay or decline funding for reasons such as:
- Down-valuing the property
- Title or legal defects in the auction pack
- Issues discovered during survey
- Missing documents or last-minute underwriting concerns
Unfortunately, these do not excuse you from completion — they are considered your responsibility under the contract.
WHAT ARE THE FINANCIAL CONSEQUENCES?
If your funds don’t arrive on time, the seller may:
- Serve a Notice to Complete — giving you 10 working days to complete with penalty interest (typically 4% above base rate).
- Charge you contractual interest from the date completion was due.
- If you still fail to complete:
- Keep your 10% deposit
- Resell the property and pursue you for any shortfall and legal costs
This can lead to county court judgments (CCJs) or enforcement action — even bankruptcy in severe cases.
WHAT CAN YOU DO?
If you’re relying on a mortgage:
- Have a decision in principle ready before bidding
- Instruct your solicitor to review the auction legal pack early
- Use a lender familiar with auction timelines
- Consider using bridging finance if there’s any doubt about speed
At Versus Law, we work with mortgage brokers, underwriters, and bridging lenders to help clients secure funds quickly and avoid the risks of missed deadlines.
SUMMARY
If your mortgage doesn’t come through in time, you’re still bound by the auction contract. Delays can be costly — and walking away will likely mean losing your deposit and facing legal claims.
Always check your funding position before bidding, and if in doubt, speak to us before the auction. We’re here to help you complete — on time and without stress.










