Auction budget calculator
Your real maximum bid once deposits, fees and funding are counted.
A winning bid is a binding contract — do the legal pack review, survey and finance BEFORE auction day, not after. Modern-method reservation fees are non-refundable, often have a minimum (~£6,000), and usually sit on top of the price. Typical figures; every lot's terms differ.
A traditional auction is unconditional: when the hammer falls you have exchanged contracts. You pay a 10% deposit on the day and must complete — pay the remaining 90% — typically within 28 days, or lose the deposit and face being pursued for the seller’s losses. That timetable is the whole discipline of auction budgeting: every pound of the purchase must be arranged, or arrangeable at speed, before you raise your hand.
The price is not the cost. On top of the hammer price come the auctioneer’s buyer’s admin fee (commonly £1,000–£1,500+), any “special conditions” in the legal pack — some sellers pass their own costs or hefty fees to the buyer, which is exactly why you read the pack before bidding — stamp duty (often at additional-property rates for auction buyers), legal costs, and almost always works, since discounted auction stock is usually discounted for a reason. The so-called modern method (conditional auction) works differently: a reservation fee of typically 4–5% (often £5,000+ minimum, usually on top of the price and not counted towards it) buys 56 days to complete.
Funding the 28 days is the other half of the sum. Cash is simplest; a mortgage is possible but risky unless the offer is substantially progressed before auction day; many buyers use bridging finance, which is quick but expensive — budget with the bridging calculator. Work backwards: funds available, minus fees, duty, legal costs, realistic works and a contingency, equals your true maximum bid. Write it down before the auction; the room is designed to move it.
Common questions
How much deposit do I need at a property auction?
10% of the hammer price, payable on the day, at a traditional auction — and you have exchanged the moment the hammer falls, so the deposit is at risk if you fail to complete (usually within 28 days). The modern method instead takes a reservation fee of around 4–5% (minimum often £5,000+), which typically does not count towards the price.
Can I buy at auction with a mortgage?
It is possible but tight: 28 days is less than most mortgage applications take end to end. Realistic routes are an agreement in principle plus a lender known for speed, a mortgage arranged against the specific lot before auction day, or bridging finance to complete on time and a remortgage after. Never bid assuming finance will simply sort itself out.
What fees do auction buyers pay on top of the hammer price?
A buyer’s admin fee (£1,000–£1,500+ is common), anything the special conditions pass to you (search costs, seller’s legal fees — check the legal pack), stamp duty, your own legal and survey costs, and finance costs if bridging. On a £150,000 lot these routinely add £5,000–£10,000 before any works.
Why are auction properties cheaper?
Speed and certainty for the seller, and condition or complexity for you: short leases, structural issues, tenants in situ, unmortgageable condition, title quirks. The discount is payment for taking on those risks quickly. Read the legal pack, view in person, and price the works before bidding — the bargain that needed £60,000 of work was not a bargain.
Numbers are half the story. Check the home itself.
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