01
Establishing the condition question first
If the property is habitable and standard construction, a mortgage may well complete in the time available. If it is not, do not spend 28 days finding that out.
Auction
“I have reserved a property through the modern method of auction”
The modern method of auction gives you roughly 56 days in total — 28 to exchange and a further 28 to complete — rather than the traditional 28 from the fall of the hammer. That is usually enough for a mortgage if the property is in good condition, and bridging where it is not.
An illustrative situation, not a client case study. It describes the kind of enquiry this market sees. Any figures are examples, not a quotation, and no credit check or lender decision is involved in reading this.
Sound familiar?
- You reserved the property online rather than in a saleroom
- You paid a reservation fee rather than a 10% deposit
- You have 28 days to exchange and another 28 to complete
- The property may or may not be in mortgageable condition
The situation
The modern method, sometimes called conditional auction, has grown quickly because it suits sellers who want certainty without the finality of a traditional saleroom. For buyers, the key differences are the timetable and the money at risk.
Instead of exchanging on the fall of the hammer, you pay a non-refundable reservation fee — frequently several thousand pounds — which secures the property while you get your finance and legals in order. Miss the deadline and you lose the fee rather than a 10% deposit, which is a smaller loss but a real one.
Why the usual lenders say no
- Nothing about the method itself prevents a mortgage, but 56 days is still tight for a mainstream lender if anything is unusual.
- If the property is unmortgageable on condition, the extra time makes no difference at all.
- Reservation fees are often payable to the auctioneer rather than credited to the purchase price, which affects the funds you need.
What usually works
02
A bridge where the property will not mortgage
Funds the purchase in condition, with a refinance onto a mortgage once the works are done. The 56-day window makes this considerably calmer than a traditional auction.
03
Starting the legal work immediately
The exchange deadline is 28 days, not 56. Searches and enquiries need to start the day you reserve, not when the finance is agreed.
Roughly how the numbers look
| Reservation fee | Frequently 3% to 5% of the price, often non-refundable |
| Time to exchange | Usually 28 days |
| Time to complete after exchange | Usually a further 28 days |
| Is the fee part of the price? | Often not — check the reservation agreement |
Read the reservation agreement carefully. Whether the fee counts towards the purchase price varies, and it materially changes the cash you need. These are examples to show the shape of a deal, not a quotation. Work out your own figures in the bridging calculator.
What we would need from you
- The reservation agreement and the legal pack
- Confirmation of both deadlines from your solicitor
- Photo ID and proof of address
- Proof of your deposit and its source
- Details of the property and its condition
- Your exit if bridging: sale, or a mortgage decision in principle
Things that catch people out
- The reservation fee is usually non-refundable even if your finance falls through.
- Confirm whether the fee comes off the purchase price. Often it does not.
- Twenty-eight days to exchange is the real deadline. The second 28 days does not help if you miss the first.
Questions we get asked
Can I get a normal mortgage through the modern method of auction?
Often yes, because the timetable is longer than a traditional auction. It still depends on the property being in mortgageable condition and on your application being straightforward.
What happens if I miss the deadline?
You normally lose the reservation fee. That is less severe than forfeiting a 10% deposit, but it is still a significant sum with nothing to show for it.
Is the reservation fee part of the purchase price?
Frequently not — it is often payable to the auctioneer in addition to the price. Check the reservation agreement before you commit, because it changes the total cash required.
The product that usually fits
See how it worksEvery case is different. A specialist will confirm what actually fits yours.
Keep reading
Related situations and guides
“I won at auction and my mortgage lender has pulled out”
The hammer fell, the deposit is paid, and the lender has just withdrawn on condition or valuation.
Read the scenario“The property I bought is unmortgageable in its current state”
No kitchen, no bathroom, structural issues or a short lease — the high street has declined on condition.
Read the scenarioBuying at auction: how to fund it in 28 days
A week-by-week plan for funding an auction purchase inside the 28-day deadline, and the mistakes that cost buyers their deposit.
Read the guideHow fast can a bridging loan complete?
What actually determines bridging timescales — valuation, legals and packaging — and the specific things that make a case move faster.
Read the guideAll situations
Eighteen situations across bridging, development, commercial and buy-to-let.
Browse them allAmram Finance Ltd is a credit broker, not a lender. We do not lend our own money and we do not approve or issue loan offers.
Your property may be repossessed if you do not keep up repayments on a loan secured on it. Some forms of bridging finance and buy-to-let lending are not regulated by the Financial Conduct Authority.