In the dynamic landscape of the UK property market, mortgage advisers play a pivotal role in guiding clients through the complexities of purchasing and remortgaging homes.
However, one of the persistent challenges facing advisers and their clients, and indeed any business active in the property market, is the high number of aborted transactions each and every year.
Generally, we are looking at a third of all property transactions which start the process but do not make it through to completion, and clearly this high rate of fall-throughs has significant financial implications for all parties involved in the mortgage chain.
Aborted transactions are costly. When a property deal falls through, the costs incurred by buyers and sellers can be substantial, including survey fees, legal fees, and administrative costs, which are often non-refundable.
For mortgage advisers, the repercussions are equally severe. Each failed transaction represents lost income and wasted resources. Advisers invest considerable time and effort into each client, and when a deal collapses, this investment yields no return. Furthermore, the broader mortgage chain, encompassing lenders, conveyancers, and estate agents, also suffers financial setbacks from these uncompleted deals.
Several factors contribute to the high rate of fall-throughs in the UK property market. Among the most common reasons are mortgage issues, changes in a buyer’s financial situation, or problems securing a mortgage can derail a transaction. In a property chain, the failure of one transaction can of course cause a domino effect, leading to multiple aborted deals.
Unfavourable survey results can also prompt buyers to withdraw from a purchase. Slow or inefficient conveyancing processes often lead to frustration and the eventual collapse of deals. When a seller accepts a higher offer from another buyer after an initial offer has been accepted, it can result in the first transaction falling through.
To mitigate the high fall-through rate however, mortgage advisers can take several proactive steps, particularly in the realm of conveyancing.
One of the most effective strategies is recommending quality conveyancers to their clients. Advisers who offer conveyancing advice and steer their clients towards reputable, efficient conveyancers can significantly enhance the likelihood of a transaction completing.
Quality conveyancers – as evidenced by those we have on our panel and the work they carry out – are often more efficient and experienced, reducing the time taken to complete necessary legal checks and paperwork.
Specialist conveyancers who handle a high volume of property cases are generally better equipped to navigate potential issues, increasing the chances of successful completion. Clients who experience smoother, faster transactions are more likely to be satisfied with the service, leading to repeat business and referrals for advisers. Advisers who recommend conveyancing services can also earn referral fees, adding an extra revenue stream to their business.
Platforms such as ours have also simplified the process of recommending and arranging conveyancing services. We provide a user-friendly interface for advisers to arrange conveyancing services quickly and efficiently.
The platform connects advisers with a network of vetted, high-quality conveyancers who are experienced in handling property transactions. Advisers can track the progress of conveyancing processes in real-time, ensuring they stay informed and can keep their clients updated. By using us, advisers can earn referral fees, enhancing their overall income while providing a valuable service to their clients.
The high rate of aborted property transactions in the UK represents a significant challenge for mortgage advisers and the broader mortgage chain. By understanding the primary reasons for fall-throughs and taking proactive steps to recommend quality conveyancers, advisers can improve completion rates, enhance client satisfaction, and secure additional income.
Keith Young is managing director of Broker Conveyancing