Property's bought on auction sites, online or offline will require a fast completion. Typically completion is between, 2 to 7 weeks from when you win the auction. This means that a bridging or property auction loan is otherwise known as a short-term loan, or mortgage is needed in order to fill in this gap.Property auction can you get you the best deals but the outcome may be slightly different in terms of completion timeframes. A typical holding deposit of around 7-10% is needed when you win a property on auction, this fee is holding fee which is non-refundable. You may lose your auction holding fee if you do not complete within the agreed maximum timeframe given.
When bidding or committing to properties on auction, you must have the assurance that the funds to bridge this gap is made available within the agreed time frame.