A third of buyers have seen property purchases fall through, with most blaming their mortgage lender for the collapse, research claims.
A poll of 2,000 people by bridging lender Market Financial Solutions (MFS) found that 31% had seen a deal fall through, with 33% blaming a delay in accessing finance, and a further 16% had seen a mortgage-in-principle rescinded after having an offer accepted.
One in ten respondents said they eventually settled for a different property they liked less because their earlier deal was unsuccessful.
MFS said this means buyers lose on average £2,899 in solicitor and surveyor fees on a failed purchase.
Paresh Raja, chief executive of MFS, said: “The UK is renowned for its love of bricks and mortar – many people strive to own a home, while real estate has long been a popular asset among investors.
“However, amidst such strong demand for property, it is concerning to see so many deals falling through after the formal house-buying process has begun.
“Evidently, difficulties in accessing the finance they need to complete the deal is a major issue for buyers.”
Very interesting statistic about the percentage where offers have been ‘rescinded’ as it shows that consumers feel that AIPs are binding when clearly they are nothing to do with the property!
It would appear that this is a perception issue.
On the flip side, where are the calculations for the blame on slow solicitors – have we been given the day off from a kicking?
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Hang on…statistics just in…100% of sales falling through are due to solicitors and licensed conveyancers. Too much of the conveyance is being done by a 14 year old on work experience in a panel and call centre law firm…it turns out the 100 page standard questionnaire forms are scaring buyers and lenders off…so are the indemnity policy requests 🙂
On a serious note though…Peter does make a good point about AIP, they are misunderstood as to what they actually mean. At best someone has thought they need to do something about how they can actually buy the property…once they’ve sold theirs, especially as their estate agent has told theirs will sell over night!
I once told a client who was having a very rough time with sales and unreliable buyers that it should be made law that if you aspired to own a property, you would need to pass a common sense exam and any result under 90 % meant you shouldn’t be allowed out in daylight hours…..! He was a politician!
Have a great Bank Holiday everyone….I have been asked to advise Donald Trump on his negotiating skills, so maybe busy for a very long time.
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