Mortgages delays adding ‘extra stress’ for buyers

Delays in mortgage approvals are adding “extra stress” for buyers and sellers, according to estate agents in Guernsey.

One agent said that, even without complications, lenders are taking 10 to 12 weeks to approve a mortgage after an offer has been accepted.

It is thought the delays are due to requirements for stricter checks and valuations, and an increase in buyers earning from multiple sources.

One local broker said there was a shortage of bankers specialising in mortgages and lenders have not invested in upgraded IT services.

Matt Brouard, director of Guernsey estate agent Cooper Brouard, said he had seen how the delays impact his clients at an already stressful time.

“Getting a mortgage today takes far longer than it did 20 or 30 years ago,” he said.

Mr Brouard said lenders have to follow stricter rules now, completing detailed affordability checks, tougher property valuations, and extensive money laundering checks.

“With more people self-employed and earning from multiple sources, the process can be more complex and lengthy,” he said.

“The knock-on effect of these delays is extra stress for buyers and sellers, while they wait to know if they will actually be moving.

“In the meantime they need to get packing, arrange removals, cleaning, transfer utilities, have house insurance in place and much else.”

Pierre Blampied, managing director of SPF Private Clients, which offers mortgages, said while his clients are seeing delays, it’s an issue he’s noticed across the UK too.

“Lenders are now quite often understaffed and there are relatively few individuals specialising in mortgages within the banking sector,” he said.

“Due to limited market size, the majority of lenders have not invested in IT systems to speed up the process.”

He said, however, that slow processes were not the fault of banks alone.

“We’re also seeing a lack of surveyors on island sadly, with a number of surveyors not offering a homebuyers’ survey, the desired survey when purchasing a property,” he said.

“The conveyancing process has also slowed matters down, and advocates are becoming risk-averse in their advice to their clients.”