Copy article

Wobbling chains due to mortgage crisis

ended 29. September 2022

Brokers, a journalist at The Guardian is wondering if any of you have case studies of people whose house sale (or chains) may be wobbling now because of all the mayhem in the mortgage market. Perhaps their buyer has pulled out as they're worried about rising mortgage payments, or sellers just don't want to upsize due to the volatility. Any anecdotes, send them across. Ideally, and don't ignore this, you will provide a REAL case study because that's what she's after. If you do, you'll almost certainly be quoted in the piece, too!

 



 

5 responses from the Newspage community

Copy all

Copy

Editor
Ranald Mitchell
Director at bad credit mortgage specialists Charwin Mortgages
Interestingly, and perhaps unsurprisingly, we are seeing quite a few buy-to-let landlords reconsider their positions and opting to sell up rather than refinance. With mortgage interest payments doubling or more, the profits from these investments just don't stack up for them. This perhaps is the dream ticket for the supply chain, but can new borrowers afford mortgages with current market rates? Those who are choosing to refinance are under pressure to increase rents, so I can see rent inflation rising rapidly over the coming 12 months.
Copy

Editor
Imran Hussain
Director at Harmony Financial Services
I am finding some folks are a little nervous as the vendors they are buying off have not yet found and they are not getting a straight answer if they want to continue with the sale or not, I have had one client where the estate agent and vendor were not forthcoming with their plans if they wish to continue with sale as the vendor needed to upsize and it had already been 8 since the sale had been agreed they client has decided to purchase another property, and the mortgage offer is already out on that one clients who are in a position where they can borrow the required funds and are not massively impacted with the rate rises will find another property should the chain look wobbly so anyone selling in this current market has to be open and forthcoming with their plans.
Copy

Jonathan Southgate
Founder at Sterling Southgate
Two clients: Client one: Following the bun fight of trying to find a property over the past two years, one of my clients finally found somewhere and had their offer accepted this week. However, with the increase in rates being so severe it has now made their monthly payments uncomfortable so they have decided to buy in a lower price bracket to meet their monthly budget. Deal off. Client two: After trying to get hold of his existing lender with no reply, we were introduced to this client this week. We ran affordability checks and found a solution for him. However, the intense coverage and lenders' reactions to the market over past two days has led to them taking a decision not to proceed, citing a lack of confidence in the mortgage market. The government needs to U-turn on these untenable policies and stop this exestential financial self-harm.
Copy

Sabrina Hall
Mortgage Adviser & Protection Adviser at Kind Financial Services
I had a client who needed their mortgage offer extending due to delays from a builder on a new build property, something that is quite common with new build houses. However, when we requested the extension the lender reassessed the affordability and applied the new cost of living figures into the calculator which meant that the lender was stating that it was no longer affordable. The clients were told just a week before completing on their new home that they would have to either find an additional £12,000 or start a new mortgage application with another lender at significantly higher rates, which is also unrealistic to complete this within a week. So because the lender deemed the mortgage unaffordable they had to find £12k or pay significantly more on the mortgage. I managed to get the issue resolved by fighting this decision with the lender on behalf of the client but this was very nearly a catastrophe for the borrower.
Copy

Jonathan Burridge
Founding Adviser at We Are Money
I have a client who has just lost the property she was buying because the vendor took the property off the market citing exchange rates. She is happy to be interviewed. Just give me a call.