Gap between exchange of contracts and completion growing
Turnaround times between the exchange of contracts and completion have lengthened as the booming demand to move home causes delays right through the homebuying process.
The drawn out exchange to completion turnaround time is a sign that the market as a whole is under strain from the volume of mortgage business, according to Kevin Roberts, director of Legal & General Mortgage Club.
Speaking to an online audience of mortgage advisers at The Mortgage and Protection Event 2020 run by our sister title, Mortgage Solutions, Roberts revealed advisers have already reported that mortgage offers are taking, in some cases, four weeks longer to obtain than they did pre-pandemic due to high demand and more complex underwriting processes.
Meanwhile delays obtaining local authority searches and a lack of capacity among conveyancers to manage the increasing workloads is slowing down the post-offer part of the transaction.
Volumes of business are unusually high as buyers rush to purchase a property during the temporary stamp duty holiday, which ends on 31st March 2021.