Buying your first home is one of life’s most exciting – and sometimes overwhelming – milestones. With property prices in London and across the UK constantly in the headlines, many first-time buyers are looking for smart, affordable ways to step onto the property ladder. One increasingly popular route is through a property auction. Whether you’re considering an online property auction from the comfort of your living room or attending a property auction in London in person, knowing what to expect can make all the difference.

At McHugh & Co, we’ve been helping buyers and sellers since 1983, and we know that preparation is key. That’s why we’ve put together this essential checklist to guide you through the process.

1. Understand How Property Auctions Work

Before you place your bid at a property auction house, it’s crucial to know the basics. Unlike private sales, the auction process is fast-paced: once the hammer falls, the winning bidder is legally bound to complete the purchase. This means you’ll need to do your homework before the big day.

Tip: If you’re new to auctions, start by watching a live London property auction online. It’s a great way to get a feel for the process without the pressure.

2. Get Your Finances in Order

First-time buyers often underestimate how quickly things move at auction. You’ll usually need a 10% deposit on the day and the remaining balance usually within 28 days. That’s why it’s essential to have funds readily available or ensure your lender is willing to provide a mortgage for the specific property you’re bidding on. A mortgage in principle alone does not guarantee approval — ideally, your lender should confirm they’re happy to lend on that particular property and can release the funds in time. Some buyers will arrange for a surveyor or valuer to assess the property prior to the auction.

If you’re considering bidding at an online property auction, make sure your lender is comfortable with auction purchases. Speak to a mortgage adviser early to avoid any complications when coming to the completion date. 

You may wish to speak with a specialist auction finance provider to understand your options and obtain a decision in principle ahead of bidding. Our trusted partner, Together, offers tailored finance solutions for auction properties.

You can find out more or speak to a member of their team by clicking here.

3. Review the Legal Pack (before you bid)

Download and read the full legal pack for the lot: title documents, searches, EPC, lease/freehold papers, and the Special Conditions of Sale. Check the Special Conditions for any additional seller fees, the deposit terms, and the completion date. You’re deemed to have read these before bidding, so ask your solicitor to review and raise queries in advance. When the electronic gavel falls, contracts are exchanged immediately and completion usually follows within 4 weeks (or as set out in the Special Conditions).

4. Register and Plan Ahead

Before the auction day, make sure you’re registered and ready to go. Since we run online property auctions, set up your account in advance, register for the next auction date, and make sure your deposit funds are in place.

This kind of preparation helps you stay focused and avoid any last-minute hiccups.

5. Set Your Budget – and Stick to It

It’s easy to get caught up in the excitement of bidding, especially at a buzzing London property auction. First-time buyers should set themselves a maximum target bid before the auction starts and stick to it. Walking away can be tough, but the same goes with over-stretching your finances. 

6. Think Beyond the Hammer

Buying at a property auction isn’t just about winning the bid – it’s about what comes after. Have a plan for renovations, insurance, and moving in. If the property needs work, get quotes in advance so you’re not hit with surprises.

Final Thoughts

For many first-time buyers, auctions offer a faster, more transparent way to buy a home. With the right preparation, you could secure a property and start your journey onto the ladder sooner than you thought.

At McHugh & Co, we host regular online property auctions open to buyers across the UK. If you’re ready to take your first step, explore our upcoming auction lots.