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A recent survey of homebuyers found that nearly two-fifths had seen their property purchases fall through due to mortgage delays. Butterfield Mortgages Limited commissioned an independent survey of 690 homebuyers, with 38% having experienced mortgage delays that resulted in their purchase falling through. The survey highlighted that over half (51%) of respondents believe that the process of securing a mortgage is too slow, with 69% believing that the process as a whole causes undue stress.
Issues With Mortgage Lenders Highlighted
Respondents in the study were keen to highlight several areas of improvement for mortgage lenders. One key area of improvement being the level of customer support offered to borrowers, with 65% believing that the provision of additional support is key to succeeding in the competitive mortgage lending market. A further 59% of respondents felt that the mortgage market as a whole is too inflexible, with lenders too heavily pre-occupied with strict and rigid criteria when assessing an applicant’s eligibility to borrow.
Alpa Bhakta, CEO of Butterfield Mortgages, said: “The research has uncovered concerns among mortgage customers with the levels of efficiency and customer care they are receiving from lenders, which should serve as a clear call to action for mortgage providers across the UK. Positively, the research shows that borrowers can see the true value in having the support of attentive lenders they can rely on to help navigate the complexities of the property market”.
“As we emerge from the pandemic and buyers face a competitive market, there is evidently a need for greater flexibility and better communication – with prospective borrowers and existing customers alike. Making such improvements will not only improve support for homebuyers, but it will also rebuild trust with mortgage customers.”
Is There Still A Risk of Mortgage Delays?
The risk of mortgage delays can be especially prevalent for landlords, with many requiring limited company mortgages or more complex products for holiday lets, HMO and commercial properties. Mortgage delays for landlords can add a number of weeks on to what may already be a drawn-out purchase process, increasing the likelihood that a great deal may fall through. However, the suggestion that two-fifths of property purchases fall through due to mortgage delays may be slightly out of date. Many lenders experienced staffing and operational difficulties during the pandemic, as traditional businesses adjusted to the majority of their employees having to work from home. Lenders have had two years to adapt, and restrictions have been lifted for the most part, which should significantly reduce the chance of delays going forward.
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