Have deposit ready 'when buying house at auction'

Making sure the deposit is available when buying a house at auction is a key part of the process, a property expert has said.

Although purchasing this way can be a good way to get your hands on a home here in the UK or abroad, having the ability to transfer money to the seller immediately is important.

Paul Mooney, managing director of Savills, said not only must the deposit be prepared - but the buyer must be sure they can obtain the rest of the funds.

"Obviously, prices have come down and, if [people] can get their hands on a decent deposit and get a mortgage, then they are a great place to potentially pick up a bargain," he explained.

Mr Mooney added some auctions are off the back of homes being repossessed and this means they may be of a lower value compared to in previous years.

The Essential Information Group recently reported that for December 2008, there was a 42.5 per cent drop year-on-year in the amount raised at property auctions.