The broker said that the tight completion deadline, typically within 28 days of the purchase, means buyers must be fully prepared before bidding.

Loans Warehouse said a lack of awareness around funding options and legal risks was leaving some buyers vulnerable.

Vikki Edwards, head of bridging and development at Loans Warehouse (pictured above), commented: “Auction purchases move incredibly quickly, and once the hammer falls, buyers are legally committed.

“If funding isn’t already in place, or if issues arise during the process, there is very little time to react.

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“We’re seeing more cases where clients are caught out, not because the deal is bad, but because they weren’t fully prepared for the speed and complexity of the transaction.”

In a recent case handled by Loans Warehouse, the client discovered that details of private water and drainage were missing after they secured the property at auction.

With the search results not due back for another 20 days — beyond the auction completion deadline — the client was at risk of losing their deposit.

Loans Warehouse worked closely with the lender to allow the transaction to proceed using an indemnity policy.

This enabled the client to complete within 28 days and avoid financial loss.

“This is a good example of where the right support and lender relationships can make the difference,” Vikki added.

“But it also highlights the risk that if funding and strategy aren’t considered upfront, situations like this can easily lead to failed completions.”