If you’ve ever attended a property auction, you’ll know the adrenaline rush that comes with placing that winning bid. What you might not know is that the real work begins the moment the gavel falls. With completion deadlines typically set at 28 days, securing the right finance quickly isn’t just important—it’s essential.
At Word On The Street, we’ve helped countless investors navigate the auction finance process, and we’ve learned that success comes down to preparation and understanding what lies ahead. Here’s what you need to know.
Most property auctions operate on strict completion deadlines: 14, 28, or 56 days from the fall of the hammer. Miss that deadline, and you risk losing your deposit—typically 10% of the purchase price—along with the property itself. This compressed timeframe means traditional mortgage products simply won’t work. You need specialist auction finance, usually in the form of bridging loans designed specifically for speed.
The challenge isn’t just about finding a lender willing to move quickly. It’s about having everything in place before you even place your bid, ensuring the 28-day countdown doesn’t catch you unprepared.
This is where most auction buyers either succeed or stumble. Before you raise your hand to bid, you should have already spoken with a specialist broker like Word On The Street. We’ll help you understand your borrowing capacity, identify suitable lenders for your target property type, and ensure your documentation is ready to go.
You’ll need proof of income, bank statements, identification, and a clear understanding of your deposit source. For the property itself, you should commission a survey beforehand if viewings are allowed. Knowing exactly what you’re buying—including any structural issues or refurbishment needs—helps lenders assess risk and speeds up their decision-making process.
Perhaps most importantly, you need a clear exit strategy. Auction finance is short-term funding, typically six to twelve months. Lenders want to know how you’ll repay: will you refinance onto a buy-to-let mortgage once the property is tenanted? Are you planning to sell after refurbishment? This exit strategy isn’t just a formality—it’s central to whether your application will be approved.
Once you’ve successfully bid, the clock starts immediately. Within days, you’ll need to provide your lender with the auction pack, legal documentation, and confirmation of your deposit payment. Your broker will coordinate between you, the lender, the valuer, and your solicitor to keep everything moving forward.
The lender will instruct a valuation, typically completed within five to seven days. Simultaneously, legal due diligence begins. This is where having an experienced broker—inclusive of integrated legal expertise, like our very own Jack Medlicott— becomes invaluable. We anticipate potential issues, whether that’s missing documentation, title complications, or security concerns, and address them proactively rather than discovering them days before completion.
Throughout this process, communication is everything, and at Word On The Street, we position ourselves as part of your wider advisory team, ensuring everyone involved understands timelines, requirements, and next steps. This coordinated approach dramatically reduces the risk of missing your completion deadline.
The difference between successfully completing an auction purchase and losing your deposit often comes down to expertise. Specialist brokers understand which lenders work quickest, which property types they favour, and how to structure applications for rapid approval.
We also know the red flags that can derail auction finance: properties with sitting tenants on assured shorthold tenancies, severe structural defects without clear refurbishment plans, or complex legal titles that require additional documentation. Identifying these issues before you bid saves you from costly mistakes.
If you’re considering bidding at auction, the most important step you can take is speaking with a specialist broker before the auction takes place. At Word On The Street, we’ll help you understand exactly what’s achievable, ensure you’re prepared for the 28-day sprint ahead, and give you the confidence to bid knowing your finance is ready to go.
Contact us today at 0161 388 2061 or enquiries@wordonthestreetgroup.co.uk to discuss your auction finance needs. Let’s make sure your winning bid becomes a successful completion.