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Mortgage problems block one in three house sales

Joanna Faith
Written By:
Joanna Faith
Posted:
Updated:
13/09/2016

Mortgage issues are the main reason for house sales and purchases falling through, according to research.  

 

Just over a third of people (34%) who had tried to buy or sell in the past five years said their deal fell through because of problems securing a mortgage.

A similar number (32%) said their plans were scuppered because buyers changed their mind at the last minute.

The research by the Nottingham Building Society found one in six sellers who have had deals fall through have suffered more than one sale fail, while 11% of buyers have had more than one purchase fail.

Problems with chains were an issue for 25% of sellers who had seen deals fall through while issues with surveys affected 17%.

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.

“Mortgage rates have never been lower and there are a wide range of competitive deals available but arranging finance can take time which should mean securing a deal in principle before starting on the process and sourcing expert advice on all aspects of the deal.”

Data from HMRC shows there were 104,200 residential property completions in July. This was up from just 73,430 in April, following the introduction of new buy-to-let stamp duty rules.