How To Use Auctions To Get Onto The Property Ladder

While falling house prices have been a cause for concern in some quarters throughout 2023, they’ve been welcomed by people yet to get onto the property ladder. With mortgage rates also starting to drop, the market is undoubtedly becoming more favourable to buyers.

Indeed, the coming months could be especially favourable for first-time buyers, banishing the prospect of pressing their noses against estate agent windows more in hope than expectation…

Afallon Penybontfawr Oswestry – Auction Property Being Sold Through Property Solvers

If you’re desperate to get onto the property ladder, buying a property at auction is often the most cost-effective route. Indeed, there are numerous property auction listings across the UK for under £50,000.

We’ve previously written about how to approach your first property auction, yet for many people, finance represents a bigger stumbling block than simply finding an auction property that’ll help you get onto the property ladder.

Making The Numbers Add Up

Regardless of whether or not you’re buying a property at auction, there are several ways to stretch your affordability criteria without increasing your monthly budget, annual salary or total savings. These are some of the leg-ups that can help you get onto the property ladder…

Extended Mortgage Terms

Many people assume mortgages cover a default 25-year term, yet half of first-time buyer mortgages have repayment periods of more than 30 years. This results in significantly higher overall interest repayments and could delay retirement plans, but it reduces monthly bills and boosts affordability.

No Deposit Mortgages

Buyers without a deposit can apply for 100 per cent mortgages, providing they meet a few key criteria. These vary by lender but tend to include being over 21 with a clean credit history and proof of regular rental payments. Auction sellers will generally be relaxed about a buyer’s mortgage terms.

Buying a Project

Our monthly auction listings are full of properties which are structurally sound but in need of modernisation and upgrading. Looking beyond the décor often reveals gems in the auction market, with DIY-savvy first-time buyers securing a home at a favourable price before making it their own.

Treat Your First Property As A Flip

Flipping expands on the concept outlined in the last point. You buy a property, do it up and then sell it on, hopefully generating a profit after taxes and costs. If the property is habitable while work is done, it keeps a roof over your head, helping you to get onto the property ladder – then climb up it!

Use Auctions For Research

As well as offering a dependable supply of cut-price properties (helping renters and first-time house hunters get onto the property ladder), auctions also help you learn about the local market. Different listings and bidding wars gradually compile a picture of which areas are popular or overlooked, which property styles are most sought-after, and so forth. Attending a property auction and watching the bids unfold offers valuable insights into local market conditions – sometimes highlighting things local estate agents wouldn’t draw your attention to.

Why not take a look at our upcoming auctions listings, and choose a local event to do some literal and metaphorical homework?