Can you buy an auction house on a mortgage

[butterflypetals]

I wondered how difficult or if it s even possible to buy an auction property with a mortgage.
Anyone have any experience in this area?

I don't think so, that's one of the reasons for auctioning a property. It's for those who have cash or loans.

But I see no reason you couldn't raise it with a mortgage provider. I don't expect they would be able to get all the checks done and mortgage agreed in a very short time frame, but you might find one who would agree.

We bought our current home at auction. We were in the lucky position to have the assets to buy.

It was a normal house with no hidden issues, who's owner needed a large amount of cash very quickly. It needs to go through 30 days from the fall of the hammer.

So he got his cash and we got our house.

If the mortgage company agreed in principle you'd be in a very difficult and expensive position if they don't release the funds within that 30 day period.

very risky
the deposit needed on the day of auction is substantial and sale needs to be completed within a strict timeframe that's almost impossible for a mortgage co to meet (was 7 days when we looked at it more than 10 years ago).

plus the issue of non-standard builds or failed mortgage surveys.

I sold my house at auction to a developer who had a mortgage. He bought the day after the auction, and asked for the weekend and a day to 'pass it by his underwriters'. He did proceed.

I forgot to add he also asked for eight weeks to completion, rather than the four I'd signed up for - but as it was lockdown I agreed. Lucky I did too as I had to move out myself, our local removal firms weren't classed as 'essential workers'.

Yes but not standard . And risky due to buyer fees

We tried to and couldn't because of the 4 week completion deadline after the auction. We had to borrow some money and then arranged a mortgage after we owned the property and repaid the loan then. Money was from parents remortgaging their house.

Yes you can. DS2 has. He had the mortgage arranged ready to go, and the deposit saved to pay on auction day.

I wouldn’t do it though, the amount of hassle he had and the fact you have to pay the sellers fees put me off.