Half (50%) of UK adults who have applied for a mortgage in the last year have had their desired product withdrawn by their lender before they could secure it, Market Financial Solutions (MFS) has found.

In a survey of 2,000 UK adults, MFS also found that over three in 10 (31%) have had an agreement in principle in place that has later fallen through, with 27% of potential buyers saying that they missed out on a property purchase due to difficulties in getting a mortgage.

Furthermore, a quarter (25%) of those surveyed said that they had lost out on fees as a result of an acquisition falling through.

The MFS survey also found that buyers thought that lenders needed to provide more in their services, with nearly three quarters (74%) saying that they feel that there is a lack of certainty being provided by lenders, with 69% stating that lenders are not showing enough flexibility.

As a result, over half (56%) of those surveyed said that they are more open than they were a year ago to working with specialist or alternate lenders to finance a property purchase.

Chief executive officer at MFS, Paresh Raja, said: “The base rate continues to rise as the Bank of England struggles in its arm wrestle with inflation, and our research underlines how difficult this is making it for people navigating the mortgage market. With products being pulled left, right and centre, and with uncertainty so prevalent, mortgage customers are struggling to find the financial options they require on the high street.

“People are in a race to remortgage at the best rate they can find, while others are still hunting for the right product to facilitate a property purchase. Clearly, too many deals are falling through and borrowers are being left in the lurch. Crucially, as interest rates are set to rise again, further volatility is likely – so, lenders must work closely with brokers and borrowers to do all they can to ensure homebuyers and investors can act with confidence in the months to come.”

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