An increasing number of property buyers are frustrated by the delays often associated with securing a mortgage in the UAE, says an expert.

The lack of a developed credit bureau continues to slow down application approvals, said Chris Dommett, CEO of John Charcol Dubai, an independent mortgage advisor.

“Their concerns have prompted home buyers to seek the assistance of a professional broker to help speed up the approval process,” he said.

The wide range of mortgage options and attractive incentives on the market are enticing nearly 71 per cent of UAE buyers to take advantage of housing mortgages to purchase their property, according to a recent survey.

However, due to the absence of a developed credit bureau and a shortage of skilled staff, the mortgage approval process in the UAE can be a difficult task, sometimes taking the banks up to six months to determine the creditworthiness of a potential buyer, he said.

According to Dommett, mortgage application approvals are considered to be among the top reasons for delays in the buying process, in some cases resulting in potential buyers losing their deposits for not securing financing before the deadline.

As a result, Dommett advises that potential buyers secure financing before they go ahead and select a property.

“Property buyers in the UAE are often blind sighted by the complexity of the mortgage approval process, unaware of the challenges that can arise from a seemingly straight forward mortgage application,” said Dommett.

“The best way to avoid losing your deposit is to get ahead of the game and secure your home financing in advance so that you have peace of mind in knowing that you can actually afford your dream home,” he added.

Mortgage brokers such as John Charcol Dubai are addressing challenges in the local market, having recognized that an increasing number of property buyers require professional assistance to guide them through a potentially daunting process, the statement said.

John Charcol Dubai offers independent mortgage advice and quality brokerage services that provide speed and transparency every step of the way, he said.

Source: Trade Arabia News