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Mortgage Experts for Modern Method of Auction

Modern Method of Auction is becoming more popular, offering flexibility and better timescales for both buyers and sellers. With much more succinct costs, property reservation methods and simplicity of process, this area of the property market is going more and more online. If buying through an online mortgage, you are legally committed and therefore must ensure you are fully knowledgeable on how these mortgages operate, so that you can follow through with the commitment to purchase.

  • Clear concise guidence
  • Acces best rates in the market
  • Get mortgage ready for auction
  • Completions within 56 days

Traditional Auctions

Traditional Auctions still take place and require mortgage expertise. You can buy at an auction with the right mortgage, but there are plenty of things that must be considered. Speak with The Mortgage Broker today to understand your options.

9,487 Properties sold via online auction in 2023 35% year on year growth for online auction sales
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Benefits of Modern Method of Auction

  • Complete Faster
  • Quick and Easy Bidding
  • Buy with a Mortgage
  • Additional Security
  • Transparency

Completing within 56 days, you can control purchasing timelines. Bidding from the comfort of your own home you can speak with The Mortgage Broker and get a decision in principle to ensure you are mortgage ready to bid on the right property.

With the binding reservation agreement, both the buyer and the seller have additional security throughout and there is complete transparency of the whole process.

How do auction purchases work?

Modern Method of Auction is a popular auction method used across the UK for selling residential and commercial properties.

  1. Listing: The property is listed as per any sale, with an auctioneer and/or an online auction platform.
  2. Marketing: Online advertising and promotion is far wider reaching for online auctions.
  3. Viewings: Potential buyers still need to view the property as per any purchase. This isn’t required, but recommended.
  4. Bidding: Like any auction, there is a typical bidding style process over a selected period of time. All electronically.
  5. Reserve Price: Just like many online marketplaces where people sell assets, the seller sets a minimum price that can be met.
  6. Completion: Once the auction has concluded, the highest bidder secures the property. Just like any traditional sale, the transaction is complete with the exchange of contracts – however, often all done within 56 days.

Can I get mortgage to purchase a property through auction?

YES. You can buy a property through the modern method of auction with a mortgage. Speak to one or our experts today to understand more and get access to the best lenders who can get you mortgage ready so you are in a position to start bidding.

At The Mortgage Broker, we understand the auction process and can access lenders to assist with this type of purchase. Our specialist advisers can help with your financial preparation and ensure you are giving yourself the best chance of success.

There are a few things to consider when getting a mortgage for auction:

Mortgage Approval:

It is really important to get a Decision in Principle from a lender before you start bidding. This not only puts you in a position of strength, but ensures you won’t fall foul of any timelines should you be the highest bidder.


You will need to have a deposit ready as if your bid is successful, you will be expected to pay a deposit within a couple of hours to secure the purchase. There is effectively a reservation fee, that can be anywhere between 4-10% of the property value, which is added on top of the property value. so needs to be considered when assessing your affordable options.

Auction Fees:

There can sometimes be additional fees associated with purchasing at auction and therefore, need to understand all costs when assessing your mortgage options.


56 Days. This is usually the specified completion timeframe – therefore, being mortgage ready is critical for a successful auction purchase.


There are different risks when purchasing a property at auction so doing your due diligence is very important. As standard, these should include legal checks, surveys and understanding any further issues associated with the property.

Be Mortgage Ready

Modern Method of Auction - Get a Decision in Principle Today

Methods of Auction

Modern Method of Auction (MMoA) can also be known as conditional method of auction. Exchange and completions take place within 56 days and with a reach across the UK, enable many more potential buyers into the market.

Essentially, the fundamentals of the mortgage are the same, however, with Modern Method of Auction, you will be required to sign a reservation agreement, in case you are a successful bidder. This is because, on completion, both parties have security that the buyer has a reservation to the property, and is committed to the seller in completing the purchase.

Decision in Principle

As a successful bidder, you will be required to complete the purchase within 56 days, and therefore, you must have a decision in principle arranged prior to the bidding, to ensure you don’t jeopardise your purchase if financing through a mortgage. The Mortgage Broker can deliver same day decision in principles for modern method of auction purchases.


Faster, More Secure Methods of Sale

The Auction Process - Made Simple

Search Online

Via Property Search Engines

Conduct Viewing

Always view the property!

Review Buying Pack

Always do due dilligence

Sale Method

Traditional or Modern Method

Bidding Process

Register before you can bid

Winning Bid

28 or 56 days until completion


Our team will get you ready

Get Auction Mortgage Advice Today

Speak to one of our experienced auction experts

Speak to our auction specialist

Non-refundable Reservation Fee

Within 2 hours of the auction ending, the successful bidder will have to pay a non-refundable reservation fee. This is paid in addition to any asking price (price can be negotiated as usual prior to commitment of course) and therefore, needs to be considered in any affordability tests when confirming the amount you wish to pay for the property.

Reservation Agreements are contained within a buyers pack and here are a couple of example’s to help you understand the sort of expectations that are contained within it.

Example Clause

4.7. The Seller agrees that the Reservation Fee paid under Clause 1.1 of this Modern Method of Auction Reservation Agreement is to be repaid to the Buyer, within 5 working days after the Termination Date, if the Buyer has been unable to exchange within the Reservation Period for any of the following reasons:
4.7.1. The purchaser does not have sufficient funds to proceed with the purchase of the Property as a direct result of a related remortgage or sale of another property in England or Wales failing to proceed.

The importance in being prepared for auction is paramount and The Mortgage Broker will ensure you are set up to complete successfully. The above extract illustrates the requirement to have an agreement in principle ahead of any bidding process.

Property Websites

When searching for properties across popular websites such as Rightmove or Zoopla, you will start to see an increasing number of properties that are being sold by auction. You will find common wording across these sites. Here is an example of what you may see:

This property is offered through Modern Method of Auction. Should you view, offer or bid your data will be shared with the Auctioneer [name of company]. This auction method requires all parties to complete the transaction within 56 days, enabling buyers to proceed with mortgage finance (subject to lending criteria, affordability and survey). The buyer is required to sign a reservation agreement and make payment of a non-refundable Reservation Fee of [X%] of the purchase price including VAT, subject to a minimum of [£XXX]. This fee is paid in addition to the purchase price and will be considered as part of the chargeable consideration for the property in the calculation for stamp duty liability.

This property offers a Buyer Information Pack containing documents around the property. These documents may not tell you all you need to know about this property, and therefore, we encourage you to complete your own due diligence before bidding. You will find enclosed in this pack a sample Reservation Agreement and T&C’s and the buyer will be expected to make a payment of [£X] towards this pack preparation.