Mortgage delays caused 38% of transaction fall-throughs

Nearly two-fifths of UK homebuyers have experienced a property purchase fall through due to mortgage delays, new research by Butterfield Mortgages Limited finds.

The specialist mortgage lender commissioned an independent survey of 690 UK mortgage customers. It found that over half of respondents (51%) believe the process of securing a mortgage is too slow, while the majority (69%) consider it a stressful experience.

The study highlighted the value mortgage customers place on having the support of a good lender, with two thirds (65%) believing it is key to succeeding in the competitive market.

It also showed a desire among borrowers for more flexibility from lenders, with 59% saying mortgage providers rely too heavily on strict and rigid criteria when assessing applicants’ eligibility.

In addition, the study found that nearly half (48%) of mortgage customers believe lenders do not provide adequate support to borrowers once the loan has been delivered.

Alpa Bhakta, chief executive officer of Butterfield Mortgages, says the findings should serve as a ‘clear call to action’ for mortgage providers across the UK.

“Positively, the research shows that borrowers can see true value in having the support of attentive lenders they can rely on to help navigate the complexities of the property market,” she adds.

“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.”