Young family ‘devastated’ by loss of deposit due to Covid

A couple with a new baby lost their life savings of £33,000 when the buyer of their home lost their mortgage offer after exchange of contracts, collapsing their chain. And a study suggests that thousands more may have faced a similar nightmare.

A hidden impact of the Covid pandemic is coming to light, as would-be homebuyers reveal the impact of lenders abruptly withdrawing their mortgage offers earlier this year – with at least two sets of buyers in Reading losing over £30,000 each.

The property market shutdown earlier this year proved especially painful for buyers nearing completion. In a survey by Butterfield Mortgages of over 1,300 homeowners and would-be homebuyers, three in 10 buyers said they had lost their exchange deposit as a consequence, due to the shutdown taking place after contracts had been exchanged.

By Nick Green. Please read the full article on Unbiased.

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