Mortgage Delays Add Extra Stress for Homebuyers

Mortgage Delays Putting Added Pressure on Guernsey Buyers and Sellers

Delays in mortgage approvals are creating "extra stress" for homebuyers and sellers in Guernsey, local estate agents have warned.

One agent said that, even in straightforward cases, it is now taking lenders 10 to 12 weeks to approve a mortgage after an offer has been accepted.

The holdups are being linked to stricter affordability checks, more detailed property valuations, and a growing number of buyers with income from multiple sources.

A local broker also highlighted a shortage of mortgage specialists within banks, along with outdated IT systems that have not been upgraded to cope with modern demands.

Matt Brouard, director of Cooper Brouard estate agents, said he has seen first-hand how the extended approval times affect clients at what is already a stressful stage.

“Getting a mortgage today takes far longer than it did 20 or 30 years ago,” he said.

Mr Brouard explained that lenders must now complete more extensive affordability tests, tougher valuations, and detailed anti–money laundering checks.

“With more people self-employed and earning from multiple sources, the process can be more complex and lengthy,” he said. “The knock-on effect of these delays is extra stress for buyers and sellers, while they wait to know if they will actually be moving.

“In the meantime, they still need to get packing, arrange removals, cleaning, transfer utilities, and organise insurance.”

Pierre Blampied, managing director of mortgage broker SPF Private Clients, said the problem is not confined to Guernsey.

“It’s something we’re seeing across the UK too,” he said. “Lenders are often understaffed and there are relatively few individuals specialising in mortgages within the banking sector. Due to the limited market size, most lenders have not invested in IT systems to speed up the process.”

But he stressed that banks are not solely to blame.

“There’s also a shortage of surveyors on the island, and fewer are offering the homebuyers’ survey, which is typically preferred when purchasing a property,” he explained. “On top of that, the conveyancing process has slowed, with advocates becoming increasingly risk-averse in the advice they give clients.”