Two in five UK borrowers experience mortgage delays, study finds

Around two in five (38%) homebuyers across the UK have experienced a property purchase fall through due to mortgage delays, a new study by Butterfield Mortgages has indicated.

The specialist mortgage lender’s findings revealed that more than half (52%) of those buying a home believe the process of securing a mortgage is too slow, while around seven in 10 buyers (69%) would consider it a stressful experience.

Butterfield Mortgages commissioned an independent survey of 690 UK mortgage customers, and the study also highlighted the value that mortgage customers place on having the support of a good lender – with 65% believing it is key to succeeding in the market.

The research also showed a desire among borrowers for more flexibility from lenders. Around three in five (59%) buyers said that mortgage providers rely too heavily on “strict and rigid” criteria when assessing applicant’s eligibility.

Furthermore, the study found that almost half (48%) of mortgage customers believe lenders do not provide adequate support to borrowers once the loan has been delivered.

Butterfield Mortgages CEO, Alpa Bhakta, said: “The research has uncovered concerns among mortgage customers with the levels of efficiency and customer care they are receiving from lenders, which should serve as a clear call to action for mortgage providers across the UK.

“Positively, the research shows that borrowers can see true value in having the support of attentive lenders they can rely on to help navigate the complexities of the property market.

“As we emerge from the pandemic and buyers face a competitive market, there is evidently a need for greater flexibility and better communication – with prospective borrowers and existing customers alike. Making such improvements will not only improve support for homebuyers, but it will also rebuild trust with mortgage customers.”

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