Home buyers have been hit with more troubles as the likelihood of them securing a mortgage seems to have hit a rocky patch.
A recent survey, conducted by a financial services company quizzed over 1,200 existing owners, and 32% of participants revealed at some point they have been denied a mortgage whilst 45% have been gazumped in the past.
Naturally, with the reduced staff resources as a result of the social distancing measures, it seems inevitable that 45% of home buyers have encountered significant delays or complications whilst attempting to secure a mortgage in 2020.
These issues, have resulted in over a third of participants considering a different finance option, such as a bridging loan, when it comes to securing their next property.
Paresh Raja, Chief Executive of the MFS firm that commissioned the survey, commented:
“The stamp duty holiday has already had a positive effect on the UK property market, sparking much more activity among buyers and sellers. However, today’s research shows that many prospective home buyers are unable to take advantage of the initiative.
“Frustratingly, this is often due to the challenges of securing a mortgage, which are beyond buyers’ control. Many banks are treading carefully and, as a result, applications are taking longer and there is a higher chance of an application being rejected. This is putting property chains at risk of collapsing.
“At this point in time, it is important that lenders keep lending – they must ensure buyers have access to the finance needed to complete on a purchase. Failing this, the stamp duty holiday will only have a limited effect.”
