Expiring mortgage offers to cost first-time buyers up to £75k

Christmas is a time for parties and celebrating, but there can be a downside to all the festivities. It has been estimated that the rush in the lead up to Christmas could delay property sales being completed and cost homebuyers many tens of thousands of pounds as they need to renegotiate expired mortgage offers.

When buyers undertake to purchase a property, there is a certain amount of legal work to be undertaken and checks to be carried out to ensure that the Land Registry is updated accurately and all the necessary searches are carried out. Most of the time, there is no ideal way of speeding up the processes that must be carried out. Christmas, therefore, with its office closures and long breaks, can really throw a spanner in the works when it comes to getting conveyancing on a property deal completed.

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Pandemic backlog

Christmas is by no means the only factor that is causing delays when it comes to conveyancing. The pandemic has also been responsible for a significant backlog when it comes to getting essential services completed. Delays in getting driving licences renewed, obtaining birth certificates, together with registering property transfers were observed thanks to Covid, according to this report in The Guardian.

The Stamp Duty holiday, which was introduced in July 2020, didn’t help. The Stamp duty relief was quite tempting to many buyers and it encouraged high numbers of first-time buyers into the market.

Rising interest rates

As inflation soars and the Bank of England keeps increasing the base rate, so the cost of mortgages increases. Buyers who have negotiated deals for mortgages at a certain percentage may find that delays mean these offers expire and it is back to the drawing board. Unfortunately, this may mean a new mortgage offer comes with a far higher price tag and this could mean extra expense running into many thousands of pounds.

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Of course, the mortgage and the price of the property are not the only expenses to be managed when buying property. There is also the cost of conveyancing and certain legal procedures which must be completed. Commissioning a homebuyers report is usually an essential part of the property buying process. If you are wondering about the homebuyers report cost, it may make sense to find a conveyancing package deal. It is worth looking at what a few experienced firms such as Sam Conveyancing and similar firms have to offer across a range of services that includes the homebuyers report cost.

Recent reports have indicated that a family looking to spend £350,000 on buying their own home could end up spending an extra £50K in the next five years as a result of rising interest rates and higher fees for mortgages.

The weeks leading up to Christmas are often busy as buyers want to finalise their purchase and spend the yuletide season in their new home. Unfortunately, the delays many people are experiencing will not only push back their plans to begin their new life in their new home, but the added costs could even put the purchase in jeopardy. Some buyers may find that if they have to renegotiate a new mortgage, the added cost of finance puts their dream home out of reach.

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