The prospect of getting on or moving up the property ladder has become an increasingly difficult venture, made more complicated by the growing number of delayed property chains in the UK. More homebuyers are finding the path to a successful completion on a property purchase marred by complications and delays – figures show that two in five (39%) house sales collapsed before completion in Q1 2018. Most frustratingly, the factors leading to a delayed property chain are often out of the control of the buyer.
Market Financial Solutions’ latest research report delved specifically into this topic, offering an insightful analysis into why more and more Britons are struggling to successfully acquire a property. Importantly, the study found that the delays encountered from mainstream lenders when attempting to secure finance is one of the key factors leading to deals falling through.
Based on a survey of more than 2,000 UK adults, our research revealed that of all the people who have had an offer accepted on a property over the past 10 years, 33% have seen the deal fail because of the amount of time it was taking to get a mortgage delivered by a bank. Moreover, an additional 16% said that despite having a mortgage in principle, the lender’s decision to later rescind the loan meant that the buyer could not follow through with the purchase.
Upon its release, MFS’ timely report generated industry-wide attention across the financial and property press, with the research being featured in more than 15 titles, including The Financial Times, City AM, Estate Agent Today, Property Industry Eye and Mortgage Introducer. Commenting on the findings, MFS CEO Paresh Raja stressed the need for homebuyers to look beyond mainstream lenders and consider how alternative finance options such as bridging finance can be used to effectively support a property investment strategy.
It is vital for brokers and borrowers to be aware of the full suite of finance options available to them when it comes to buying a property. MFS’ team of underwriters are on hand to offer industry-leading expertise on how bridging loans can provide tailored finance solutions and reduce the chances of a buyer becoming stuck in a property chain.
Download a copy of MFS’ latest research report.