Buying Property at Auction With Cash vs Finance: Pros and Cons

Introduction

Auction buyers often talk about buying with cash as if it is automatically the smarter route. Sometimes it is. Sometimes it is simply the most obvious route.

The more useful question is whether using all your own cash is the most efficient choice for this property, this timeline and your wider investment plans.

Cash buyers usually benefit from a simpler transaction and fewer funding-related complications. Buyers using finance may preserve liquidity, spread their capital across opportunities and use leverage to fund a purchase that supports a wider investment strategy.

Neither approach is universally better. The right choice depends on the property's condition, the auction's completion deadline, the total cost of funding and what else your money needs to accomplish.

Auctions make this decision particularly important. When the hammer falls, the successful bidder is generally contractually committed to the purchase. The deposit is usually payable immediately, and completion must take place by the date set out in the auction contract.

That means your funding strategy should be settled before you bid, not improvised afterwards.

This guide compares buying property at auction with cash against using finance, explains why some cash-rich investors still borrow and outlines how to decide which route suits your circumstances.

Key takeaways

Cash can simplify completion: you avoid relying on a lender to release the purchase funds, provided the money is available and accessible.
Finance can preserve liquidity: borrowing may leave more cash available for refurbishment, taxes, contingency and other investments.
Cash does not remove property risk: legal issues, title restrictions, overpaying and unexpected repair costs can affect cash buyers too.
Finance must be arranged before bidding: a lender's interest in the property does not guarantee approval or completion within the auction deadline.
The auction deposit still matters: financed buyers generally need their deposit available immediately when the hammer falls.
Compare the whole deal: purchase price, transaction costs, finance costs, refurbishment budget and exit strategy matter more than whether the purchase is labelled cash or financed.

1. The core difference between buying with cash and finance

At a property auction, the key distinction is where the purchase money comes from and whether completion depends on a lender releasing funds.

Buying at auction with cash

A cash buyer uses available funds to complete the purchase without relying on a loan drawdown for the purchase itself.

This can make the funding process more straightforward. The buyer does not need to satisfy a lender's valuation, underwriting and security requirements as a condition of obtaining purchase finance.

However, buying with cash does not mean there are no checks to complete. The buyer still needs to understand the legal pack, confirm the title position, budget for taxes and fees, and ensure sufficient money is available to complete and deal with the property's condition.

Cash also has an opportunity cost. Money committed to one property cannot simultaneously be used for another purchase, refurbishment project or business requirement.

Buying at auction with finance

A financed buyer uses a mortgage, bridging loan or another suitable funding arrangement to complete the purchase.

The right finance structure can help an investor preserve capital rather than tying the entire purchase price up in one asset. This may be particularly relevant where the property needs work or where the investor intends to acquire multiple properties over time.

The trade-off is that finance introduces additional requirements. The lender may need to assess the property, verify the borrower's circumstances, review the legal position and confirm that the proposed loan meets its criteria.

If the chosen funding route is unsuitable or the application is not ready, the buyer can face a serious completion problem.

The difference in practice

Consideration	Buying with cash	Buying with finance
Source of purchase funds	Buyer's available capital	Mortgage, bridging loan or another suitable facility
Dependence on loan drawdown	No, for the purchase itself	Yes, if completion relies on the facility
Valuation requirements	No lender valuation required for purchase finance	Lender valuation or other assessment may be required
Funding costs	No purchase-loan interest, but capital has an opportunity cost	Interest, fees and other facility costs may apply
Liquidity after purchase	Can be reduced substantially	May be preserved, depending on the amount borrowed
Refurbishment budget	Must be funded from remaining capital or another source	May be funded partly through an eligible facility or separate funds
Transaction complexity	Often simpler from a funding perspective	Depends on lender conditions, legal work and drawdown arrangements
Best suited to	Buyers prioritising funding simplicity and who can retain sufficient reserves	Buyers who need leverage or want to preserve capital and have a credible funding and repayment plan

Neither route eliminates the need for careful preparation. The difference is how the purchase is funded and which risks the buyer must manage.

2. Pros and cons of cash versus finance

Buying property at auction with cash: the advantages

1. A simpler funding process

A cash buyer does not need to wait for a purchase mortgage or bridging lender to release the purchase funds. This removes one potential source of delay, although the buyer must still meet the auction contract's legal and completion requirements.

2. Fewer lender-imposed restrictions

A cash purchase is not dependent on a lender accepting the property as security. This can be useful where a property needs extensive work or has characteristics that make standard mortgage finance difficult.

It does not mean every property is a sensible purchase. The buyer still needs to investigate title, condition, planning, access and other relevant risks.

3. No purchase-loan interest

Where the buyer funds the purchase entirely from their own money, they do not pay interest on a loan used for that purchase.

However, cash is not cost-free in an economic sense. The capital may otherwise have been available for another investment, business use or contingency.

4. Greater control over the funding decision

The buyer does not need to structure the purchase around a lender's requirements. This can make it easier to decide how to manage refurbishment, timing and the eventual sale or refinance.

5. Potentially greater resilience when a transaction is difficult

If a property is unsuitable for mortgage lending, a cash buyer may still be able to proceed, provided the property is legally and financially acceptable to them.

This can create opportunities, but it can also mean taking on risks that a lender might otherwise identify or decline to finance.

Buying property at auction with cash: the disadvantages

1. Capital becomes tied up in the property

A substantial cash purchase can leave less money available for other investments. If the property requires major refurbishment, the buyer may discover that the purchase has consumed the funds needed to complete the work.

2. Less liquidity for unexpected costs

Auction properties can come with repair bills, legal complications or delays that were not fully anticipated. A cash buyer who uses most of their available capital on the purchase may have limited flexibility when those costs arise.

3. Opportunity cost

The relevant comparison is not just the interest avoided by buying with cash. It is also what the capital could have achieved elsewhere, taking account of the additional risks and costs of those alternatives.

That does not mean borrowing is automatically more profitable. It means the buyer should make a deliberate decision about how their capital is used.

4. Concentration risk

Using a large share of available cash on one property can concentrate financial exposure in a single asset. This may be a reasonable decision for some buyers, but it should be considered alongside their wider financial commitments.

5. Cash does not protect against overpaying

A buyer can complete quickly with cash and still pay too much for the property. Without a disciplined maximum bid and a realistic appraisal of costs, the simplicity of cash can make it easier to overlook the economics of the deal.

Buying property at auction with finance: the advantages

1. Preserving capital

Finance can allow a buyer to retain cash for refurbishment, professional fees, tax liabilities, contingency or other business needs.

This can be valuable when the property requires significant work and the purchase price is only one part of the total investment.

2. More flexibility across investments

An investor who does not use all available cash on a single purchase may retain the ability to pursue another opportunity or respond to an unexpected expense.

That flexibility is valuable only if the cost of borrowing is justified and the investor can manage the repayment obligation.

3. Leverage

Borrowing allows a buyer to control an asset using less of their own capital than an entirely cash-funded purchase would require.

Leverage can improve the return on the investor's own capital when a project performs well. It can also magnify losses and create repayment pressure if the property underperforms.

4. Funding acquisition and refurbishment

Some specialist facilities can support both the acquisition and eligible refurbishment costs, subject to lender criteria. This may help an investor structure a purchase and works programme without funding every cost from cash reserves.

The borrower must establish exactly what the lender will fund, when the money will be released and what contribution is required from them.

5. Potential to support a repeatable investment strategy

For experienced investors, finance may form part of a planned acquisition, refurbishment, sale or refinance process.

The objective should be sustainable capital management rather than borrowing simply because funding is available.

Buying property at auction with finance: the disadvantages

1. Lender timing can create completion risk

An auction contract may require completion within a short period. If the finance application is not sufficiently advanced, the lender may not be able to complete the necessary checks and release the funds in time.

Pre-auction preparation can reduce this risk, but it cannot guarantee approval.

2. Valuation risk

The lender's valuation may differ from the buyer's estimate or the auction purchase price. The lender may consequently offer less than the buyer expected or decline the property.

The buyer needs a contingency plan for a lower advance, a revised structure or a decision not to bid.

3. Legal and underwriting requirements

A lender may need to review the legal pack, title, property condition, borrower information and exit strategy. If issues emerge late, the application may be delayed or the proposed terms may change.

4. Interest and fees

Finance introduces costs that a cash buyer does not pay on a purchase loan. These may include interest, arrangement fees, valuation, legal and broker charges, depending on the facility.

The borrower should compare the total cost over a realistic term, including the possibility of a delayed sale or refinance.

5. Repayment and exit risk

A bridging loan is usually short-term. The borrower must have a credible repayment route, such as selling the property or refinancing onto a suitable longer-term facility.

If the planned exit does not happen as expected, additional costs may arise. Failure to repay secured borrowing can ultimately put the property used as security at risk.

3. Which route suits different types of buyers?

The right funding choice depends on the buyer's experience, available capital, property strategy and ability to manage the transaction.

Buyer type	Potentially suitable route	What matters most
First-time auction buyer	Cash or carefully prepared finance	Understanding the legal pack, deposit, completion deadline and total costs
Experienced property investor	Cash, bridging or another suitable facility	Capital efficiency, deal economics and exit certainty
Developer	Often a structured finance solution, depending on the scheme	Funding the acquisition and works without creating a cash-flow gap
Portfolio landlord	Cash, bridging or longer-term borrowing	Whether the property is mortgage-ready and how it fits the portfolio
Home mover or owner-occupier	Cash or an appropriate mortgage route	Occupation plans, property condition, mortgage eligibility and completion timing
Buyer of a property needing major works	Cash or specialist refurbishment finance	Works budget, property condition, permissions and the funding needed before completion

First-time auction buyers

First-time buyers generally benefit from maximising clarity before bidding. Cash can remove lender-related steps, but only if the buyer retains enough money for the deposit, completion, taxes, legal fees and unexpected costs.

Finance may be appropriate where the property is unsuitable for a standard mortgage or the buyer has a well-prepared route to completion. However, a first-time buyer should not assume that bridging finance will be available simply because the property needs work.

Experienced investors

Experienced investors may choose finance even when they have enough cash to buy outright. Their decision may reflect the need to preserve capital for refurbishment, maintain reserves or pursue multiple opportunities.

The question is whether the cost and risk of borrowing make sense for the specific project. A strategy that works on paper may not be suitable if the investor has too many simultaneous projects or insufficient cash to handle delays.

Developers

Developers often need to manage cash across land or property acquisition, construction, professional fees and contingencies. Depending on the scheme, development finance or a refurbishment facility may be more suitable than a standard bridge.

The funding route should reflect the construction programme and the timing of expenditure. A facility that covers the purchase but leaves the works underfunded can create problems later.

Portfolio landlords

A landlord may use bridging finance to acquire a property quickly and then refinance after it meets the requirements of a suitable longer-term mortgage product.

That route depends on the property becoming eligible for refinance and the valuation, rental income and other criteria supporting the proposed borrowing. The future refinance should be investigated before the purchase, not treated as guaranteed.

Home movers and owner-occupiers

Buyers intending to live in the property need to consider their intended occupation, the property's condition and the availability of an appropriate mortgage.

A property that needs extensive work may not be acceptable to a conventional mortgage lender in its current condition. A bridging solution may be possible in some cases, but the borrower must understand its costs, suitability and repayment requirements before bidding.

4. Why some cash buyers still use bridging finance

One of the most misunderstood parts of auction finance is the assumption that having cash means you should always spend it.

A cash-rich investor may still use bridging finance because the purchase is only one component of the overall project. Retaining liquidity can sometimes be more valuable than avoiding interest entirely.

Preserving liquidity

Suppose an investor has £400,000 available and is considering a property purchase for £300,000.

Buying entirely with cash would leave £100,000 before accounting for transaction costs and any other commitments. If the property needs substantial refurbishment, that remaining amount may not provide a comfortable contingency.

A finance structure could allow the investor to retain more cash for works, tax, fees and unexpected costs. Whether that is worthwhile depends on the borrowing cost, lender criteria and project economics.

The figures are illustrative and do not imply that a lender would offer a particular amount.

Keeping capital available for other opportunities

An investor with several opportunities under consideration may prefer not to commit all available cash to one property.

Finance can preserve flexibility, but taking on multiple loans can also increase exposure to interest costs, delays and refinancing risk. Capital efficiency should not be confused with unlimited borrowing capacity.

Using leverage strategically

Borrowing against a property can allow an investor to commit less personal capital to the purchase. If the project succeeds, the investor may achieve a stronger return on their own cash than they would have achieved using cash alone.

However, the loan must still be repaid. Interest and fees reduce the profit, and a lower sale price or delayed exit can erode the return quickly.

A useful comparison is to calculate the expected project profit under both a cash-funded and financed scenario, then stress-test the result.

Avoiding a forced sale elsewhere

An investor may hold other assets that they do not want to sell quickly to fund an auction purchase. A bridge may provide short-term liquidity while allowing a more deliberate decision about those assets.

This can be useful, but only if the repayment plan is realistic. Borrowing to avoid selling one asset can simply transfer the pressure to the property used as security.

The important distinction

Using bridging finance when cash is available is not inherently clever or reckless. It is a capital-allocation decision.

Before borrowing, compare:

Total interest and fees.
Cash retained after completion.
Refurbishment and contingency requirements.
The expected holding period.
The exit strategy and likely repayment amount.
The consequences of a lower valuation or delayed sale.
The alternative uses of the cash being preserved.

If the retained capital has no clear purpose, paying finance costs may not be justified. If using all the cash would leave the project underfunded, a carefully structured facility may deserve consideration.

5. Speed, deposit and completion: what buyers need to know

Cash can make funding simpler, but both cash and financed buyers need to understand the auction process before bidding.

The auction deposit

The successful bidder is generally required to pay the deposit immediately after the hammer falls, in accordance with the auction terms.

Finance does not remove that obligation. A buyer planning to use a bridging loan or mortgage should have the required deposit ready from an acceptable source and understand any additional payments due under the contract.

Do not assume that the lender will fund the deposit at the point of sale.

The legal pack

Cash buyers still need to review the legal pack. A lender's absence does not remove risks involving title, access, restrictions, leases, planning matters or special conditions.

Financed buyers need the same legal understanding, plus confirmation that the lender is willing to proceed on the basis of the property's legal position.

Where the transaction involves unusual conditions or a short completion deadline, legal review should happen before bidding.

The completion deadline

The completion date and any special conditions are set by the auction contract. A buyer should not assume that every property has the same deadline.

Cash buyers need to ensure their funds will be available when required. Financed buyers must coordinate the lender, solicitors, valuation and any outstanding conditions so that funds can be released in time.

Pre-auction finance preparation

A financed buyer should establish the proposed lender route before bidding. Depending on the product and case, this may involve an initial decision, a valuation, legal review, underwriting and confirmation of the conditions that must be met before drawdown.

Pre-auction approval or an agreement in principle should not be treated as a guarantee that the loan will complete. The final offer, valuation, legal checks and lender conditions still matter.

Auction execution checklist: cash vs finance

Before bidding

Set a maximum bid based on the property's total cost and realistic value.
Read the legal pack and special conditions.
Confirm the deposit amount and how it must be paid.
Check the completion deadline.
Budget for taxes, legal fees and other transaction costs.
Assess the property's condition and likely refurbishment costs.
Decide whether the exit is a sale, refinance, hold or another route.

If buying with cash

Confirm that the funds are accessible and available in time.
Keep enough cash for fees, works and contingency.
Avoid assuming the purchase price is the full cost of the project.
Consider how the purchase affects liquidity and other commitments.

If buying with finance

Identify a lender and product suitable for the property.
Confirm the proposed loan amount and likely net advance.
Understand the valuation and legal requirements.
Check interest, fees and repayment terms.
Confirm the lender's conditions and the expected funding timetable.
Have a contingency if the lender advances less than expected or cannot complete in time.

6. How to choose the right route

Rather than asking whether cash or finance is generally better, assess the purchase in the context of the actual deal.

Step 1: Calculate the full project cost

Start with the purchase price, then add the relevant costs:

Auction and transaction fees.
Stamp Duty Land Tax (SDLT), where applicable.
Legal and professional fees.
Refurbishment or development expenditure.
Finance interest and fees, if borrowing.
Insurance, utilities and holding costs.
Contingency for unexpected work or delay.

SDLT liability depends on the property, buyer, transaction and applicable reliefs or surcharges. Check the rules and your circumstances rather than assuming a particular rate applies.

Step 2: Work out how much cash must remain available

Do not assess affordability by asking only whether you can pay the purchase price.

Consider how much cash will remain after completion and whether that is sufficient to cover the work, fees, living costs, business commitments and a sensible contingency.

If a cash purchase leaves too little money to complete the planned works, it may be worth comparing alternative funding structures.

Step 3: Model the finance option

For a financed purchase, calculate the total expected cost over a realistic holding period.

Include interest, arrangement fees, valuation, legal and broker charges where applicable. Establish whether fees are paid upfront, deducted from the advance or added to the balance.

Then calculate the redemption amount if the exit takes longer than expected. This is particularly important with bridging finance.

Step 4: Compare the two scenarios

A simple comparison can help:

Question	Cash scenario	Finance scenario
Can the purchase complete on time?	Are the funds ready?	Are the lender conditions and drawdown timetable achievable?
What cash remains afterwards?	Cash balance after purchase and fees	Cash balance after deposit, costs and required contribution
How are works funded?	From remaining capital or other resources	From remaining capital and any eligible works facility
What are the funding costs?	No purchase-loan interest, but capital has an opportunity cost	Interest and fees, plus any applicable charges
What happens if the project is delayed?	Additional holding and project costs still apply	Additional holding costs and potentially extra interest or fees
How is the investment repaid or realised?	Sale, refinance or continued ownership	Sale, refinance or another route sufficient to repay the facility

The figures should be based on realistic assumptions. A financed scenario that only works if the property sells immediately may be less robust than a cash scenario with a healthy contingency. Equally, a cash scenario that consumes all available funds may leave the buyer exposed if the property needs more work than expected.

Step 5: Stress-test the decision

Run at least one less favourable scenario. Consider what happens if the works overrun, the valuation is lower than anticipated, the sale takes longer or refinance proceeds are insufficient to repay the loan.

The purpose is not to predict every problem. It is to establish whether you can absorb a reasonable setback without jeopardising the entire transaction.

7. Common mistakes to avoid

Mistake 1: Assuming cash means risk-free

Cash removes dependence on a purchase lender, but it does not remove property, legal, valuation or market risk.

A cash buyer can still overpay, underestimate refurbishment costs or purchase a property with a title issue. Proper due diligence remains essential.

Mistake 2: Treating finance as a shortcut

Bridging finance can support a time-sensitive purchase, but it is not a substitute for preparation. The borrower must still meet the lender's criteria, understand the costs and have a credible exit.

Bidding before checking the funding route can turn a promising opportunity into a completion problem.

Mistake 3: Spending all available cash on the purchase

A property may need more money after completion than the buyer initially expects. If the purchase consumes most available capital, the buyer may struggle to fund essential repairs, insurance, professional fees or unexpected issues.

Set aside a realistic reserve before deciding how much to bid.

Mistake 4: Comparing interest rates without comparing total cost

A low monthly rate does not automatically mean a cheaper facility. Arrangement fees, exit fees, valuation, legal costs and the duration of the loan can materially affect the overall amount payable.

Ask for a written cost breakdown and a redemption illustration.

Mistake 5: Assuming the refinance will definitely happen

An investor may plan to use bridging finance to buy and refurbish a property, then refinance onto a longer-term mortgage.

That strategy depends on the completed property meeting the future lender's criteria and achieving a valuation and rental income that support the required borrowing. If those assumptions fail, the bridge may need to be repaid another way.

Mistake 6: Ignoring the auction contract

The completion deadline and special conditions matter whether the buyer pays cash or uses finance.

Read the contract and legal pack before bidding, and make sure the funding plan matches the actual timetable.

8. Who this guide suits — and when to avoid each route

Cash may suit buyers who:

Have sufficient available funds to complete and retain a reasonable reserve.
Want to avoid dependence on purchase-loan drawdown.
Are buying a property that is difficult to finance conventionally.
Have assessed the opportunity cost of committing their capital.
Can fund any refurbishment and contingency without relying on uncertain future income.

Cash may be less suitable when:

The purchase would consume nearly all available capital.
Significant refurbishment costs remain unfunded.
The buyer has other essential financial commitments.
The capital could be used more effectively elsewhere after accounting for the risks and costs.
The buyer is using cash simply because borrowing feels more complicated, without comparing the full economics.

Finance may suit buyers who:

Need to preserve capital for works, contingency or other investments.
Have a credible plan for repayment.
Can meet the deposit and completion requirements.
Have identified a lender whose criteria fit the property and transaction.
Understand the total cost of borrowing and can absorb a reasonable delay.

Finance may be unsuitable when:

The completion timetable is too tight for the proposed facility.
The buyer has not confirmed the lender's criteria or required documentation.
The deal only works at an optimistic valuation.
There is no credible exit strategy.
The borrower cannot afford interest and fees if the project runs over schedule.
The borrower assumes a future refinance is guaranteed.

The goal is not to prove that cash or finance is superior in every situation. It is to select a route that gives the buyer a realistic chance of completing, funding the property properly and achieving the intended outcome.

9. Frequently asked questions

Is cash always better when buying property at auction?

No. Cash can simplify the funding process and remove reliance on lender drawdown, but it also ties up capital. Finance can preserve liquidity and support a wider investment strategy, although it introduces interest, fees and lender conditions. The best route depends on the property, buyer's financial position and the total project economics.

Can I use bridging finance even if I already have the cash?

Yes, subject to lender criteria and the suitability of the facility. Some investors use bridging finance to preserve cash for refurbishment, taxes, contingency or other opportunities. However, the cost of borrowing needs to be justified by the value of retaining that capital, and the borrower still needs a credible repayment strategy.

Do financed buyers still need the auction deposit?

Yes. The deposit is generally due immediately when the hammer falls, in line with the auction conditions. A mortgage or bridging loan does not normally remove that immediate obligation. Buyers should confirm the amount, payment method and source-of-funds requirements before bidding.

Can I get a mortgage for a property bought at auction?

Potentially. A mortgage may be suitable if the property meets the lender's criteria and the finance can be arranged in time for the contractual completion date. Properties requiring substantial work or presenting unusual valuation or legal issues may not qualify for standard mortgage finance in their current condition. Check the proposed funding route before bidding.

Is bridging finance faster than a mortgage?

It can be suitable for transactions requiring short-term funding, but speed depends on the lender, property, valuation, legal position, underwriting and the readiness of the application. No lender should be assumed to complete within a particular period without assessing the specific case. Prepare early and do not treat an initial indication as a guarantee of funds.

Can I buy at auction with cash and refinance later?

Potentially. A buyer may purchase with cash and later apply for a mortgage or other suitable facility. Approval, valuation, affordability and product eligibility will depend on the circumstances at that time. Do not assume that refinancing will be available or that it will release the full amount of capital originally invested.

What happens if my finance does not complete before the auction deadline?

The buyer remains subject to the auction contract. Failure to complete can have serious financial and legal consequences, depending on the contract and circumstances. Before bidding, ensure the funding route is realistic, understand the completion requirements and have a contingency plan. Do not bid on the assumption that the lender will resolve outstanding issues after the auction.

Should a property investor use cash or leverage?

There is no universal answer. Leverage can preserve capital and potentially improve the return on the investor's own funds, but it also adds interest, fees and repayment risk. Compare the expected return and total cost under both scenarios, then test how the investment performs if the sale price is lower or the project takes longer than planned.

Final thoughts: choose the funding route before you bid

Buying property at auction with cash can offer simplicity and certainty, while finance can provide leverage and preserve capital for other parts of a project. Neither route is automatically the smarter choice.

The strongest decision comes from understanding the property, reading the legal pack, calculating the full cost and establishing how the purchase will be completed and ultimately funded or repaid.

If you plan to use finance, arrange the proposed route before bidding. If you plan to pay cash, make sure the purchase will not leave the project underfunded. In both cases, keep a realistic contingency and avoid relying on optimistic assumptions about refurbishment, valuation or resale.

Auction360 can help you explore the options through its auction finance service, pre-auction approval, legal pack review and auction risk analysis. For transactions requiring short-term property funding, visit the bridging finance page.

For a broader framework on auction preparation and disciplined bidding, read Deji Nehan's Auction Demystified.

Book a funding consultation to discuss the transaction, understand the funding options and identify the key questions to resolve before you commit to a bid.

About the author

Deji Nehan is a property finance professional, wealth coach and author of Auction Demystified. His work focuses on helping buyers and investors understand property finance, assess auction risks and make better-informed decisions.

Important information

This article is for general educational purposes only and does not constitute financial, legal, tax or investment advice. Finance availability, rates, fees, lender criteria and completion times vary. Any borrowing is subject to lender assessment and formal terms. Buyers should review the auction contract and legal pack and obtain appropriate professional advice before bidding. Bridging finance is secured lending; failure to repay may result in the property used as security being repossessed.