Property crunched

0 Comments | Sunday Mirror, Apr 6, 2008 | by STEPHEN HAYWARD Consumer Correspondent

ONE in three house sales are falling through because of the credit crunch, property experts revealed yesterday.

Buyers are finding it more and more difficult to get mortgages as lenders pull their best deals and increase borrowing rates.

About 1,000 home loan deals have been withdrawn in the past week.

Estate agents Hamptons say about 35 per cent of house sales are falling through while Savills puts it at 20 to 25 per cent, mainly through funding being withdrawn.

Paul Jarman of Savills, says loan firms are valuing some houses at 10 or 15 per cent less than the agreed sale price.

Yesterday Skipton building society became the first major lender to charge borrowers for taking out a variable rate mortgage - a move watchdogs called "profiteering".