New research has revealed that a staggering two-fifths of UK homeowners have experienced a property deal fall through due to mortgage lending decisions.
Mortgage firm Butterfield interviewed hundreds of homeowners and also found that half of those polled felt the mortgage decision process had been too slow and that two-thirds of them thought lenders are too inflexible when making lending decisions.
Also, nearly half said they felt lenders didn’t care about them once a lending decision had been made, or the consequences for the property chain, and two-thirds found getting a mortgage stressful.
A survey by Propertymark last year during the worst months of problems with the conveyancing system found that 62% of sales fell through because buyers changed their mind prior to exchange, with mortgage problems being the fifth most likely reason for this, behind finding a nicer property, problems revealed by surveys and problems further up the chain.
“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,” says Alpa Bhakta (pictured), CEO of Butterfield Mortgages.
“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.”