Posted on:

Half of prospective property buyers have been affected by mortgage providers withdrawing mortgages from the market, according to a Mortgage Strategy report. If it’s something you’ve been affected by or are worried about, read on to find out how you could respond.

50% of buyers said their lender withdrew their desired mortgage before they had a chance to secure it. In addition, 31% had an agreement in principle in place that later fell through.

Research from Moneyfacts supports the survey findings. In September 2023, the average shelf life of a mortgage was just 15 days.

With the average mortgage available for a little over two weeks, it may mean buyers feel pressure to act quickly. As well as potentially making buying a home more stressful, the survey from Mortgage Strategy also found:

  • 27% of mortgage customers missed out on a property purchase due to difficulties getting a mortgage
  • 25% of customers said they’d lost out on fees as a result of a purchase falling through.

So, it’s not surprising that almost three-quarters of buyers believe there is a lack of certainty provided by lenders.

4 useful steps that may help you if your desired mortgage is withdrawn

1. Consider informing the seller

A lender withdrawing a mortgage you intended to apply for could delay the buying process. While you might worry about a seller pulling out if they find learn about it, getting in touch could be practical.

Unexpected delays or a lack of communication can be frustrating. Keeping the seller in the loop and letting them know how things are progressing may mean they’re more understanding. They could be experiencing the same challenges too.

2. Remember there are other lenders to choose from

Missing out on a mortgage deal can be disheartening. However, it doesn’t mean you should scrap your homebuying plans.

Remember, there are lots of other lenders to choose from, including those that don’t have a high street presence.

There are also specialist lenders if your circumstances aren’t straightforward. For instance, there are mortgage providers that are more likely to provide a mortgage to self-employed workers or those with a poor credit score.

So, don’t panic – you may be able to secure a different mortgage deal.

3. Take the time to find a mortgage that’s right for you

If a mortgage has been withdrawn, it can be tempting to quickly apply for another one. Yet, taking some time to look through your options may be useful.

The mortgage you select could affect your finances for years. Giving yourself some time to review the different options could help you secure a mortgage that suits your needs and reduces your outgoings.

Choosing a lender that’s likely to approve your application may be important. A rejected application could lead to delays and may result in a hard credit check that will show up on your credit report, which could be a red flag for other potential lenders.

4. Get in touch with a mortgage broker

A mortgage broker can offer valuable support when you’re applying for a mortgage, particularly at a time when mortgage deals aren’t remaining on the market for long.

We can search the mortgage market on your behalf to assess which lenders could be right for you. In addition, as a mortgage broker, we may have access to deals that aren’t available to customers who apply directly and can offer support when you’re filling in your application.

We may also be able to alert you when a lender will remove a deal from the market. So, it could provide an opportunity to submit your application before it’s withdrawn or find a comparable deal.

Working with a mortgage broker might help you secure a more competitive mortgage deal and reduce some of the stress of buying a home.

If you’d like to arrange a meeting with us or have any questions about applying for a mortgage, please get in touch.

Please note:

This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.

Your home may be repossessed if you do not keep up repayments on a mortgage or other loans secured on it.