Mortgage rates may have fallen to record lows, but that doesn’t mean it is any easier to get one, and this could be holding back transactions.
Research by Nottingham Building Society found that 22% who have tried to buy or sell a property in the past five years have said their deal fell through because of mortgage problems.
However, buyers changing their mind at the last moment accounted for 32% of fall-throughs and problems in the chain for 25%.
Around 15% of the deals which failed cited buyers not being able to get a loan while 7% of failures were due to sellers being unable to secure a mortgage.
Some of the mortgage-related problems were due to inability to get a loan agreed in time.
Conveyancing problems came further down the list, while 17% said a survey hit their purchase.
Su Snaith, head of estate agency at the Nottingham, said: “It is worrying that the successful outcome of many housing transactions relies so heavily on people getting the right mortgage for them very early on.
“Selling or buying a house does not have to be stressful, but with hundreds of thousands of transactions failing every year it is clear that people need expert support and advice throughout the process.
“There is a limit to what you can do to stop people changing their minds but finance should not be an issue.”
Would be interesting to see what the causes of the mind changes were?
Conveyancing problems came further down the list, (smiley face) but not for long I expect!
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In my experience it is quite rare for a purchaser, or indeed a vendor, to openly tell you the real reason why they are withdrawing from a transaction.
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I disagree most FTB do not pull out, they loose their fees which has a tendency to lock them in. I would say 4 out 5 fall through due to lenders, that’s my experience.
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The only reason sales fall through because of buyers with mortgage problems is due to the agent not doing their qualification properly.
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