New research from Market Financial Solutions (MFS) reveals that 50% of adults who have applied for a mortgage in the past year have had their desired product withdrawn by their lender before they could secure it. The finding comes from an independent survey of 2,000 UK adults conducted by the specialist lender.
The survey further disclosed that 31% of respondents had an agreement in principle fall through, while 27% missed out on a property purchase due to difficulties in securing a mortgage. One in four (25%) lost out on fees as a result of an acquisition failure.
The study also showed a considerable dissatisfaction with the current lending landscape. A significant majority (74%) of those surveyed felt lenders are not providing enough certainty, with 69% believing they are not showing sufficient flexibility.
The withdrawal of mortgage products and the subsequent challenges for potential homebuyers seem to be driving a shift in lender preferences. Over half (56%) of the respondents indicated they are more open to working with alternative or specialist lenders compared to a year ago.
Paresh Raja (pictured), CEO of MFS, said: “The base rate continues to rise as the Bank of England wrestles with inflation, making the mortgage market increasingly difficult to navigate. With products being pulled frequently and uncertainty so prevalent, mortgage customers are struggling to find the financial options they need.”
Raja added: “Too many deals are falling through, and borrowers are being left in the lurch. As interest rates are set to rise again, further volatility is likely. Lenders must work closely with brokers and borrowers to ensure homebuyers and investors can act with confidence in the coming months.”
