Mortgage delays losing home deals

Nearly 40% in survey lost deals due to slow lenders

Mortgage delays losing home deals

The housing market is still running hot – and when there are plenty of buyers chasing homes, the last thing your clients want is problems with their loans.

But, according to a new survey, that is exactly what is happening to far too many.

The survey of nearly 700 borrowers was commissioned by Butterfield Mortgages – the HNW lending arm of offshore Butterfield bank.

The independent survey found that more than half of respondents found the entire lending process took too long, while a staggering 38% claimed that they had lost a deal because of mortgage delays.

So while the results of the survey do show the pressures that buyers face (an unsurprisingly high proportion - 69% - found the process stressful) these numbers do serve to highlight how important it is for clients to get the individualised services of a mortgage intermediary.

“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,” Alpa Bhakta, chief executive of Butterfield Mortgages told FT Adviser.

“As we emerge from the pandemic and buyers face a competitive market, there is evidently a need for greater flexibility and better communication.”

It stands to reason that first time borrowers are most likely to be mystified by the mortgage process – but how much are they borrowing? Well obviously, it varies by region - but thanks to data from Lloyds from the year before last, this gives us an idea.