Mortgage offer delays effect millions

Posted: 12 Sep 2006 12:18:26 GMT

Millions of home buyers and sellers in Britain are facing frustrating delays each year because of the length of time it takes to approve mortgages.

A poll of 2,200 adults by YouGov found that an estimated 1.4 million buyers experience unnecessary stress as a result of delays on mortgage offers.

The study reveals that nearly two million homebuyers suffer delays on mortgage offers, with 255,000 people losing money and 79,000 people gazumped because of delays.

The report for lender GMAC-RFC suggests that "instant mortgage offers can put an end to the painful waiting game" and has announced that it has enhanced its own online mortgage system to provide instant mortgage offers for many buyers.

More than two thirds (68 per cent) of respondents to the poll said that they would have appreciated receiving a mortgage or re-mortgage offer on the same day they applied for it.

Jeff Knight, GMAC-RFC director of marketing, said: "Buying a house is one of the most exciting things you can do, however this excitement has often been offset by a huge amount of unnecessary stress and uncertainty involved in the process, whilst the mortgage offer has been waited for, which can take up to a month."

Buyers and sellers are advised, however, that in certain circumstances mortgage approval delays are part of the process and they should be prepared to wait for a decision.

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