Gary Oxborough is Practice Principal here at Barlow Irvin Financial Services. Gary talks about expectations when it comes to processing mortgage applications.
Now that the stamp duty holiday is coming to an end and lockdown is being eased, we are hopefully going to be moving back to some sort of normality when it comes to how long it takes to process a mortgage application and how long the legal process is taking.
Over the last few months there have been a few factors that have combined to push average turnaround times up for buying a property, or remortgaging. Prior to the pandemic, we were advising clients that it takes around 12 weeks to buy a property from the point of agreeing a price to completion. This can now be around 16 weeks, often more. The stamp duty holiday has caused a rush of purchases, which combined with mortgage lenders and solicitors having to deal with the challenges of staff working remotely, are the main reasons for this.
We are explaining to new clients that this isn’t a situation that we expect to return to normal immediately, so please set your expectations on how long it will take to move into your dream home accordingly. Realistically, I can’t see a return to normal timescales until towards the end of this year at the earliest.
As with all things, this can also provide some positives. If you are in no rush to move, for example if you are still saving towards the cost of moving into your new home or for new furniture etc, it can provide a little breathing space.
My team are always on hand to help with any questions on this or any other related topic. Should you need advice or have any questions, please don’t hesitate to call us on 01204 304 814.
As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments.