Usually, buying a property at auction is unconditional. If you were to buy the property at auction we would still need to obtain a valuation to finalise your loan.
Therefore, you would need to be certain that the property's value is at least what you buy it for and all our eligibility criteria are complied with. If the valuation comes back less than the purchase price, you would need to make up the shortfall, which would mean paying more than a 20% deposit on the purchase price.
Alternatively, you could obtain the valuation prior to the auction but there is no guarantee that you would end up being able to purchase the property at auction even after spending the money on a valuation.
It may not be prudent to buy a property at auction if you are relying solely on our conditional pre-approval. Ultimately, this is a decision for you to make with regards to how you would like to proceed and your appetite for risk.