One in two mortgage customers see product withdrawn by lenders

By Bridging Loan Directory 25th July 2023

Half of people who have applied for a mortgage in the last year have had their desired product withdrawn by the lender before they could secure it, new research from Market Financial Solutions (MFS) has revealed.

The specialist lender commissioned an independent survey of 2,000 UK adults. It found that 50% of those who have applied for a mortgage since 1 July 2022 have seen their desired product withdrawn by a lender during the application process.

Over three in ten (31%) have had an agreement in principle in place that later fell through.

The survey revealed that 27% of mortgage customers have missed out on a property purchase due to difficulties in getting a mortgage, with 25% losing out on fees as a result of an acquisition falling through.

Meanwhile, an overwhelming majority (74%) of respondents feel there is a lack of certainty being provided by lenders at present, while 69% think lenders are not showing enough flexibility.

MFS’s research also found that most (56%) people are more open than they were a year ago to working with alternate or specialist lenders to finance a property purchase.

Paresh Raja, CEO of MFS, 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 re-mortgage 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.”