10 percent of home sales being stopped because of mortgage problems
According to a recent report around 10 percent of property sales in the UK are being stopped as a result of problems with mortgages.
A survey was carried out recently amongst the members of the Royal Institute of Chartered Surveyors, and the results indicated that one in every ten property sales was being stopped as a result of the potential buyer being unable to obtain the mortgage finance required to go through with the purchase.
The government has put into place a number of measures to try and boost the property and mortgage market, but the results of the survey indicate that these measures may not have been as effective as the government may have hoped.
Almost 10 percent of agreed sales on properties have been falling through according to RICS members and estate agents, and this is usually because the necessary finance cannot be obtained from the mortgage lender.
One estate agent stated: “We are seeing around 10 per cent of transactions failing to go through, but that should be put into context. We are in a location where people have lots of equity, or are cash buyers.”
An official from the Royal Institute of Chartered Surveyors added: “A significant number of would-be buyers — particularly first-time buyers — still cannot get finance. The Government’s attempt to improve the flow of funds is not delivering.”
There are also concerns over how long the mortgage process can take, even for those that have a decent credit history and rating.
One official said: “The process can take as long as seven weeks and, if it emerges that you have, say, paid a gas bill late, you go to the back of the queue again.”
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