Modern Method of Auction: Harrison Andrews Explains and Answers Quick Questions
Summary: What is Modern Method of Auction:
The Modern Method of Auction (MMoA) is a mostly online conditional auction. If you are the winning bidder on a property, you pay a non-refundable reservation fee to secure exclusivity of it and then typically have around 56 days to exchange and complete. Usually there are an initial 28 days to exchange, followed by a further 28 to complete. That window is the key point when it comes to mortgages: It is mortgage friendly if you move fast by getting mortgage ready, with a mortgage in principle, solicitor instructed and valuation booked.
There is one vital consideration where you must remember the reservation fee is on top of the purchase price and will not count towards your deposit.
What is relevant in the current market? UK auction activity has been resilient, and July saw over 4,500 lots go under the hammer, which is a 3.6% rise on last year. Furthermore, £662.4m was raised, which is a growth of 8.3% on last July. (Written August 2025).
Quick fire with Harrison Andrews, Modern Method of Auction expert at The Mortgage Broker.
Q: What is the Modern Method of Auction in one line?
Harrison: A conditional online auction where if you win the bid, you pay a non-refundable reservation fee which gives you exclusivity for 56 days to exchange and complete the purchase. Giving buyers who need a mortgage a fair shot and potentially adding flexibility to the process which compared to a traditional auction that is very rigid
Q: Why do you like it for our clients?
Harrison: It blends speed and certainty with enough time for a standard mortgage. It is more accessible than a traditional auction and is a smooth transaction when organised properly.
Q: Where is it being used and what’s the market tone?
Harrison: Estate agents and auction partners are using MMoA to widen the buyer pool. Regionally, the market is showing momentum is strong in parts of the Midlands and the North, but it is spreading across the UK. There is a large rise in the residential market, mainly being pushed by Estate Agents on vacant properties, for a vendor this means lower fees, high comitmment and quick turnaround
Q: What’s the real timeline buyers should plan around?
Harrison: When the auction closes, the fee is paid immediately. Then the target exchange is within 28 days to then complete by 56 days. The clock starts the moment you win the bid. There are small differences between auction houses
Q: What fees catch buyers out?
Harrison: The reservation fee (often a few % of price) is separate from the purchase price and your mortgage deposit. Some platforms add a buyer admin/legal-pack fee so it is important to read the terms before you bid.
Q: Any SDLT quirks on fees?
Harrison: If a fee is conditional on completing the purchase, HMRC can treat it as chargeable consideration. In simple terms i.e., it is included in your SDLT calculations. Get your conveyancer to confirm for your lot.
Q: Mortgage or bridging — which fits MMoA?
Harrison: Standard mortgage in most cases, and we will support you to get the Mortgage in Principle (MIP) before you start. The 56 day window exists for getting this mortgage done. Keep bridging as a contingency if the property is not immediately mortgageable, but that is more expensive. With structured advice, a prior survey and a qualified mortgage in principle, the risk is massivley reduced.
Q: If I am a First-time buyer with a 10% deposit, is that realistically enough?
Harrison: Yes, but budget the reservation fee in cash on top of the deposit. Don’t bid unless you’ve ring-fenced fee + deposit + SDLT + legals and have an MIP in hand. This can bring your deposit for mortgage purposes closer to 5%, so still possible in the right circumstances
Q: I have saved up 5% as a First-Time buyer, surely I would not be able to do this as I cannot afford the reservation fee?
Harrison: That can be the case and the reservation is a further amount to save up for. However, depending on the market demand for the property there can be a further option you may be able to still proceed using the part payment deposit option. Instead of paying a separate reservation fee, you pay a deposit based on the reservation fee which is held in a client account. This counts both as your reservation and as part of your mortgage deposit, so you’re not finding extra money on top of your 5%.
Q: My dream house is on the market, but I need to sell my house! Is this still possible to buy at auction?
Harrison: Yes, it’s still possible. In a similar case, we have helped a client negotiate with the auction house to extend the completion deadline from 56 to 72 days, giving time to sell their home. They also added a clause ensuring the reservation fee would be refunded if their sale or mortgage fell through, making it financially safer to proceed.
Q: Where do buyers get unstuck?
Harrison: Two places:
- Finance readiness: no MIP, slow valuation, or property fails lender criteria.
- Fee risk: bidder pulls out and lose the reservation fee. Preparation fixes 90% of it.
Bottom line
MMoA gives ordinary buyers — including first-timers and landlords — a genuine path to win at auction with a mortgage. It’s quicker and clearer than private-treaty, but do the maths on fees and be ready to hit the 28/56-day milestones. If you prepare well, it’s a clean way to buy without the usual chain pain.
Do you want a Mortgage in Principle (MIP): Book a Free Appointment with Harrison.
Learn more about what a MIP is here, and why they make you a more attractive buyer. Mortgage in Principle.
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