Mortgage complications in 2020
A survey of almost 1,300 UK homeowners and buyers has revealed some of the challenges people are facing within the property market at present. Of those people polled, more than 200 have bought a house in 2020, while over 300 are currently on the hunt for a property.
The study undertaken by the Market Financial Solutions (MFS), uncovered that 46 percent of those who have bought a property in 2020 stated that they encountered significant delays or complications during their efforts to secure their mortgages – whilst prospective home buyers – those who are currently house hunting in 2020 have said that they are currently experiencing these same issues – these same house hunters, who currently make up 36 per cent of the people questioned in this new survey, have stated that it is likely that they may have to choose alternative finance options such as bridging loans when purchasing their home.
Paresh Raja, CEO of MFS, said: “The stamp duty holiday has already had a positive effect on the UK property market, sparking much more activity among buyers and sellers. However, today’s research shows that many prospective homebuyers are unable to take advantage of this initiative.
“Frustratingly, this is often due to the challenges of securing a mortgage, which is beyond buyers’ control. Many banks are treading carefully and, as a result, applications are taking longer to process and there is a higher chance of an application being rejected. This is putting property chains at risk of collapsing.
“At this point in time, it is important that lenders keep lending – they must ensure buyers have access to the finance needed to complete on a purchase. Failing this, the Stamp Duty holiday will only have a limited effect.”
In July 2020 we reported on some of the positives that the new stamp duty holiday would bring to the housing market and what those would mean for new homeowners, but it seems like the lingering effects of COVID-19 – and now the since-announced recession – has left a bitter taste in mouths of those who have recently purchased a new home during the pandemic, and current home hunters alike.
If you’re looking to sell your home or are searching for your dream property, contact the expert estate agents at Chimneypots today on 01489 584298. Our friendly team of estate agents has years of experience successfully selling properties across Hampshire and Dorset as well as helping people find their perfect home.