Andy Thompson and Jordan Moss give guidance on how understanding mortgages can help accelerate growth in auctions

Writing for Mortgage Solutions Andy Thompson, director and auctions expert at BTG Eddisons and Jordan Moss, mortgage and protection adviser at Mantra, part of BTG, discuss what to expect from mortgages at auction, and how to understand and realise the potential in this route to buying and selling that continues to grow.

Affordability, security, and speed of sale challenges are being faced across the residential house buying market by landlords and individuals. The result is seeing more people ask about opportunities in the auction market and even stepping into it for the first time. 

For the article, Andy and Jordan mapped data from EIG against the BoE base rate (as in the table below). They found that when mortgage rates spiked in 2022 there was an uptick – by around 1,000 – of house sales at auction. Since then, this figure has stayed around the same mark, even when rates began to fall.

In their article for Mortgage Solutions, Andy and Jordan also note that landlords and individual home buyers are also drawn to the speed, stability and security of sale that auctions deliver. However, to attract more there needs to be a better understanding of the bespoke mortgage packages and requirements needed at auction.

These include financial preparation beyond a deposit, expecting shorter completion timescales, and the understanding that a commitment made on auction day is legally binding from the moment the hammer falls. 

Closing the article, Andy and Jordan note that the BTG auctions and mortgages teams are helping many clients navigate these areas. And as more enter the market attracted by the opportunities on offer, they will be prepared to support with the financial and advisory experience needed.

Read the full article on Mortgage Solutions here