How to Finance a Property Bought at Savills Property Auctions
- Ben Weighill
- Aug 3
- 5 min read
Written by: Ben Weighill, CeMAP Qualified Mortgage Broker
Specialist Broker at Highfield Mortgages
FCA Firm Reference Number: 991954
Over 10 years' experience structuring complex finance solutions across the UK.
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Buying a property at Savills Property Auctions can be an excellent way to secure a bargain, whether you're a property investor, developer or buying your next project.
But there's one thing that catches many buyers out...
Once the hammer falls, you're legally committed to buying the property.
Unlike a traditional purchase, where you might have several months to arrange your mortgage, auction purchases move incredibly quickly. Most Savills auction purchases require you to pay a 10% deposit immediately, with completion typically due within around 20 working days (or as specified in the auction conditions).
For many buyers, that's simply not enough time for a standard mortgage.
That's where auction finance comes in.
Why traditional mortgages don't usually work for auction purchases
Many high street lenders can take six to twelve weeks (or longer) to process a mortgage application.
At auction, you don't have that luxury.
If your mortgage isn't ready before the completion deadline, you could:
Lose your 10% deposit
Face financial penalties
Be liable for the seller's costs
Risk legal action for failing to complete
This is why experienced auction buyers arrange their finance before they even place a bid.
The most common solution: Bridging Finance
A bridging loan is designed specifically for situations where speed matters.
Instead of waiting months for a mortgage offer, many bridging lenders can issue formal offers within days, allowing you to complete your auction purchase on time.
Bridging finance is commonly used when buying:
Properties needing refurbishment
Unmortgageable properties
Buy-to-let investments
Commercial properties
Mixed-use buildings
Development opportunities
Land purchases
If you've found the perfect property in a Savills auction catalogue, a bridge can provide the funds needed to secure it quickly.
How the process works
Before the auction
This is the stage where good planning pays off.
Ideally, you'll speak to a specialist broker before auction day so they can:
Assess how much you could borrow
Explain your finance options
Obtain an Agreement in Principle where appropriate
Ensure the property is suitable security
Discuss your exit strategy
Having finance lined up before bidding gives you confidence and helps avoid expensive surprises later.
Auction Day
If you're the successful bidder:
Contracts exchange immediately
You pay your 10% deposit
The completion deadline is fixed
At this point, there's no changing your mind.
Your finance application needs to move quickly.
After you've won the auction
Once you've secured the property, your broker will typically work with the lender, valuer and solicitors to keep everything progressing as quickly as possible.
The usual steps are:
Property valuation
Legal checks
Loan approval
Release of funds
Completion before the auction deadline
Working with lenders who regularly finance auction purchases can make a significant difference to how smoothly the process runs.
Can you refinance onto a mortgage afterwards?
Yes—and this is exactly what many investors do.
A common strategy is:
Buy the property using a bridging loan.
Carry out any refurbishment or improvements.
Refinance onto a standard residential or buy-to-let mortgage.
Repay the bridge.
This can be particularly useful if the property wasn't suitable for a mortgage when purchased but becomes mortgageable after the work is completed.
What if the property needs renovating?
Many properties sold through auction require modernisation.
Some lenders won't provide a standard mortgage if the property lacks a functioning kitchen or bathroom, has structural issues, or is considered unsuitable security.
Bridging finance is designed for these situations, allowing you to purchase first and improve the property before arranging long-term finance.
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How Highfield Mortgages Helped a Client Turn an Unmortgageable Auction Property into an £80,000 Success
When James contacted Highfield Mortgages, he'd already found a property he wanted to bid on at a Savills Property Auction.
The three-bedroom semi-detached house had enormous potential, but there was one major problem—it was completely unmortgageable.
The kitchen had been removed, there was no functioning bathroom, the electrics were outdated, and the property had been vacant for several years. While this put off many buyers, James saw an opportunity.
After successfully purchasing the property at auction for £195,000, he had just 20 working days to complete. With a traditional mortgage not being an option, he needed specialist auction finance quickly.
That's where Highfield Mortgages stepped in.
Finding the Right Auction Finance
As soon as James instructed us, we discussed his plans for the property, his renovation budget and, most importantly, his exit strategy.
Because we work with lenders that understand auction purchases and unmortgageable properties, we were able to source a competitive bridging loan that met the auction deadline.
Throughout the transaction, we liaised with the lender, solicitors and valuers, helping to keep everything moving so James could complete on time and avoid risking his deposit.
Transforming the Property
Once the purchase had completed, James immediately started renovating the property.
The refurbishment included:
A brand-new kitchen
A modern bathroom
Full electrical rewire
New central heating system
Damp treatment
Plastering and decorating throughout
New flooring
Landscaping the gardens
The entire project took just under four months.
The Results
By the time the work was finished, the transformation was remarkable.
Purchase Price: £195,000
Renovation Costs: £42,000
Stamp Duty, Legal & Finance Costs: Approximately £18,000
Total Investment: £255,000
Following the refurbishment, the property was valued at £335,000, creating around £80,000 in additional equity.
Helping Our Client Exit the Bridging Loan
Our support didn't end once the renovation was complete.
We also helped James arrange a long-term buy-to-let mortgage based on the property's new value.
The refinance repaid the bridging loan in full, allowing him to retain the property as an investment while releasing much of the capital he had tied up in the project.
The property was subsequently let for £1,650 per month, providing a healthy rental income and allowing James to start planning his next auction purchase.
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Why use a specialist auction finance broker?
Auction purchases leave very little room for delays.
A specialist broker can help by:
Finding lenders who understand auction deadlines
Comparing bridging loan options across multiple lenders
Managing the application from start to finish
Working alongside your solicitor and valuer
Helping you plan your exit strategy before you bid
Having an experienced broker involved early can often make the difference between completing successfully and missing the deadline.
Useful Resources Before You Bid
If you're considering buying at a property auction, it's worth taking the time to understand how the process works and what your legal obligations will be once the hammer falls. Savills provides a helpful guide to buying at auction, including what happens on auction day and the completion process.
You can also find valuable information from the Financial Conduct Authority (FCA) on understanding mortgages and borrowing, while HM Land Registry offers guidance on property ownership and registration. These resources, combined with expert advice from Highfield Mortgages, can help you approach your auction purchase with confidence.
Helpful links:
Savills Property Auctions – Buying at Auction: https://auctions.savills.co.uk/
Financial Conduct Authority (FCA): https://www.fca.org.uk/
HM Land Registry: https://www.gov.uk/government/organisations/land-registry
GOV.UK – Stamp Duty Land Tax: https://www.gov.uk/stamp-duty-land-tax
Need Auction Finance for a Savills Property?
If you're planning to bid at a Savills property auction, it's worth speaking to a specialist before auction day—not after.
At Highfield Mortgages, we help buyers secure fast, competitive bridging finance for auction purchases across England and Wales.
Whether you're buying your first investment property or adding to an established portfolio, we can help you understand your options and put the right finance in place before you bid.
Thinking about bidding?
Get in touch before auction day for a no-obligation discussion. We'll explain what's possible, help you understand your borrowing options, and ensure you have the right finance lined up so you can bid with confidence.
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