An increasing number of property buyers are growing frustrated by the delays often associated with securing a mortgage in the UAE, as the lack of a developed credit bureau continues to slow down application approval procedures.

Their concerns have prompted home buyers to seek the assistance of a professional broker to help speed up the approval process, said Chris Dommett, Chief Executive Officer, John Charcol Dubai.

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.

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

As a result, he said potential buyers should secure financing before they go ahead and select a property.

"Property buyers 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. The best way to avoid losing the deposit is to get ahead of the game and secure your home financing in advance," he said.

Demand for insurance

As the sophisticated UAE mortgage market adopts preferred global insurance practices to back mortgage applications, demand for life insurance premiums is set to rise, a financial expert said.

"Mortgage lenders across mature markets in Europe, the US and the Far East often view life insurance payment and mortgage protection cover as one of the primary securities to support mortgage application," said Nigel Watson, Sales Director at Nexus Group of Companies.

The UAE mortgage market is valued at Dh20bn and is estimated to grow to Dh64bn in three years.

He said protection schemes offer short-term coverage of mortgage payments when a owner is out of employment or needs assistance.