Speaking at the Westminster Legal Policy Forum seminar, The future for the home buying process, CA director of delivery Beth Rudolph (pictured) noted there were ways lenders could improve processes too.
But she highlighted that broken chains were less of a problem on the continent because of certainty in the process and more flexible quick finance.
“You don’t have [broken] chains in these European countries,” Rudolph said.
“Not necessarily because of the affordability ratios but you can take into account bridging finance in those other countries.
“They do much cheaper, more accessible bridging finance which we don’t do here, under the same European regulations at the moment, so why can’t we make bridging finance OK and more affordable?” she asked.
Certainty of offers
Rudolph also noted that chains were much stronger because of the certainty of offers made and urged big lenders to adapt.
“It is a binding offer the moment your offer is accepted, it means you’re buying that property,” she said.
“You’ve got six days in which you can pull out, but most of the mortgage lenders are global and are lending in those markets, so why can’t they work that in this market? Surely that’s possible too?”
Rudolph added: “In those countries after day six they know the transaction is going ahead and they will complete in week 12, so the seller can then go and put an offer in on the property they want to buy.
“So there is a chain of completions, but not a chain on exchanges of contracts.”