Delays mean that borrowers miss out on mortgage deals
New research has shown that nearly four out of ten borrowers have missed out on a mortgage deal because of a delay in the lending process. A survey conducted by mortgage lender Butterfield Mortgages has found that more than half of all mortgage borrowers complained that the process took far too long with almost seven out of ten saying that the process was overwhelmingly stressful. As many lenders currently withdraw rates or increase prices with very short notice this problem is being felt particularly acutely at the moment. Brokers too have complained that rates that are available in the morning are not available by the afternoon which causes problems with clients being rushed to make a decision or risk losing the deal and having to take out a more expensive replacement. Delays due to lenders taking too long to make a decision on complex cases or incorrect paperwork has also seen many buyers missing out on the best deals. 690 borrowers took part in the survey conducted by Butterfield Mortgages who are the UK arm of the private offshore bank Butterfield Bank.
Chief Executive Alpa Bhakta comments: “The research has uncovered concerns among mortgage customers with the levels of efficient and customer care they are receiving from lenders, which should serve as a clear call to action for mortgage providers across the UK. As we emerge from the pandemic and buyers face a competitive market, there is evidently a need for greater flexibility and better communication" However, Chris Sykes, technical director of Private Finance contests the findings stating: “Out of the hundreds of mortgages I have arranged, I struggle to think of any examples where the property purchase has fallen through due to mortgage delays." He adds: “This really does shine a light on how important it is that before finding a property you get pre-qualified for finance either by a lender or by a broker so that you can go into any purchases confident that your purchase will go through. “From a lender's point of view, I’m sure they would love to lend more money and have less stringent guidelines, but the rules are there for a reason."