Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.
Broken chains blamed for most completion delays, brokers say
A poll by Mortgage Solutions has found that broken transaction chains are the most commonly cited cause of delays to housing completions in the current market. Half of the brokers surveyed identified broken chains as the primary obstacle to clients' completions.
The poll was conducted against a backdrop of subdued market activity. In July, the Royal Institution of Chartered Surveyors (RICS) reported that buyer demand and sales remained "languishing" in negative territory, although August saw a slight improvement, with agreed sales recording their least negative reading since February at minus 17%.
Legal and conveyancing hold-ups
Missing property information was the second most commonly cited issue, selected by 18% of respondents. However, Nicholas Mendes, mortgage technical manager and head of marketing at John Charcol, argued that conveyancing delays remain the most significant barrier to completions. He said the mortgage side is not always the main blocker once an offer is issued, pointing instead to legal work, searches, enquiries, leasehold issues, management packs and chain coordination as factors that can slow transactions down.
Aaron Strutt, product and communications manager at Trinity Financial, said broken property chains and legal delays continue to be among the most significant obstacles to timely completions, as they have been for years. He noted that in many cases there is simply no urgency to get completions through quickly, even when buyers want the purchase to proceed as fast as possible.
Other respondents highlighted delays linked to solicitors carrying out anti-money laundering (AML) checks, while others pointed to prolonged legal processes more broadly.
William Coe, associate director at Cleerly, said the increasing use of low-cost conveyancing firms can create avoidable delays. He said people often gravitate towards the cheapest solicitor, but these are frequently high-volume operations treated like call centres, where files bounce between handlers and no single person has control of the case.
Client-led delays
Brokers also reported that some delays originate from clients themselves. Mendes said buyers occasionally decide to switch properties after receiving a mortgage offer, requiring amendments to the application and additional lender checks. This can mean going back to the lender, updating the valuation and slowing the process down again.
Coe added that delays can also arise when clients fail to provide requested documentation promptly, extending the time required to complete transactions.
With half of respondents identifying broken chains as the biggest obstacle, the findings suggest that completion delays often stem from wider transaction issues rather than the mortgage process itself. That is relevant for letting agents and inventory clerks whose instructions depend on completions proceeding on schedule.
Source: Mortgage Solutions