If you go to buy a property at auction, you will be required to pay a 10% deposit on the day once you have won the auction and the balance within about 28 days. You might think you can arrange a mortgage this quickly assuming the property is mortgageable (meaning it must have a functioning kitchen and bathroom which many repossessed properties in an auction may not have).
This may be possible but this is often faster than a bank can move and too great a risk to take with your 10% deposit. The route taken by many is to arrange Auction Bridging Finance. The first thing to know about Auction Bridging finance, is that fast; it can usually be arranged in a matter of days.Secondly, up to 70-75% of the purchase price or Open Market Value (usually whichever is lower) is available so you will still need a deposit of 25-30% in total. Before the auction, speak to us about your likelihood of getting finance on the property you are buying.