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New research from Market Financial Solutions has revealed that home buyers are being overwhelmed by the long road to purchasing a property and delays in obtaining a mortgage, with many experiencing financial loss and mental stress.
The specialist lender commissioned an independent survey of 1,183 people who had bought property in England and Wales since 2014 and in the process found that 37% had been gazumped. Of these, 59% said they had been gazumped, at least in part, because of delays or long wait times in obtaining a mortgage.
What’s more, 58% of respondents said they’d been turned down while waiting for a buyer for their desired property. In fact, looking at the broader picture, 54% of those who’d experienced rejection said that getting caught up in a long real estate transaction chain was a major factor.
The MFS survey also revealed the financial and emotional costs of being gazumped, with 62% saying they missed out on their dream home and 61% saying they were forced to buy a property they didn’t really like.
Additionally, the majority (59%) of people lose money they invested in the property buying process (such as inspection fees and legal fees).
Paresh Raja, CEO of Market Financial Solutions, said: “Much has been said about the root cause of gasthumping – fierce market competition caused by an imbalance between supply and demand. But in searching for causes, we often overlook the emotional and economic impacts gasthumping causes.”
“Throughout the buying process, potential buyers often become very attached to the property, making it particularly hard to accept when a deal suddenly falls through. Thousands of pounds This is often lost if the deal does not go through, which is like rubbing salt into the wound.
“Clearly, long property transaction chains and mortgage delays were cited as the main factors leading to people being gaszamped, providing a lesson for lenders, brokers and agents. All parties need to work together to reduce the risk of delays and ensure buyers can secure funding quickly, thereby closing the window for gaszamping tactics and minimising the emotional and financial impact on would-be buyers.”