Using the EA Mortgage brokers and solicitors

suze_g

I'm a FTB and was interested in a flat advertised by a certain EA, I put an offer in and they wanted me to come and chat to the mortgage broker working alongside them. They stated they needed to assess my position so they could really push my offer. I was ok about them assessing my position, as they need to know that I can actually afford a place, have a chance of getting a mortgage etc.

Anyway my offer was accepted and they are now really pushing me to use their Mbroker and their conveyencing services (actually another firm whom they work with). They are telling me the seller is less likely to pull out if they do it all, as they can do it faster, and keep the seller informed during all stages etc. They are saying that many solicitors don't have the same interest and will be slow etc. They are saying if I use them the seller can check progess online etc.


I feel abit out of my depth and stressed now as I've never done this before. I've got quotes from about 4 solicitors, inc their one, and they are all pretty similar, except their one offers a no sale no fee.

Any opinions, advice would be greatly appreciated please.

theartfullodger

If you can get a mortgage without going through a broker and the overall cost (interest, fees etc etc - say over the 1st 5 years) is lower then I'd say go for it.

In my experience brokers CAN be useful if you need something quicker than usual.. as they have more ways of "encouraging" lenders. However there are a few dodgy ones..

Personally I'd go anywhere but the EAs tied mortgage broker - last house I bought I went to the next-door EA to the one I was buying from & used their broker. (Less likely that the EA & broker "gang-up" and rip you off in some way not immediately obvious).


re. Solicitors no sale no fee sound good ... The EA is probably (mortgage & Solicitor) getting a (legitimate or murky) fee for introducing a client. Ask them how much and that you want half.

Cheers!

Artful

princessamy86

I would go no sale no fee if you possibly could, sales are very uncertain things at the moment! All the stuff about seller being less likely to pull out is sales guff, they've probably been sent on a course on overcoming objections as they are targeted to book a certain amount of people to use these services. However, the one thing I will say is that communication is better. I can wait 3/4 days for an independent solicitor to return my call (I'm an EA) but with our in-house people I just send a quick email and have a reply within an hour. Up to you really but IMO no sale no fee is VERY important!

With regards to using their mortgage broker, do they charge a fee? Are they whole of market? If not, see another advisor who is, you can't know you're getting the best deal if you only speak to someone with access to a limited amount of lenders. There's loads of good articles on this site about mortgages, have a read and check through that you're happy with it. If you are, no reason not to use them as they actually have very little input to sale after you get your mortgage offer. Hth

princessamy86

Personally I'd go anywhere but the EAs tied mortgage broker - last house I bought I went to the next-door EA to the one I was buying from & used their broker. (Less likely that the EA & broker "gang-up" and rip you off in some way not immediately obvious).

Artfullodger, I might be naive but how could the EA and mortgage advisor rip you off? There are rules! Alright, I know that not every single person in the whole world abides by the law but surely 99% do!

princeofpounds

tied mortgage brokers are a big scandal and I wouldn't be surprised to see it legislated against at some point. It is a conflict of interest between the agent, working for the seller, and the broker, the buyer, if they are one and the same.

This caused a big, public problem at foxtons for instance where the brokers disclosed the buyers negotiating position to the agent.

Of course they are not meant to do this, and probably only want commission, but I would be wary. There is no particular advantage to you and you may get a better deal elsewhere. You can prove your position at any time without disclosing your whole status

I would *always* use my own solicitor.

It sounds like they see you as inexperienced and are being pushy as a result. Assert yourself politely.

poppysarah

Who you get your mortgage with shouldn't make any difference to the buyer. The EA will gain commissions from referring you to companies like solicitors/mortgage brokers.

Just say no.

Is it against their governing body rules to insist? I'd hope so.

princeofpounds

Eas have no governing body, except voluntary ones. Pretty unregulated industry. I work in finance and we are always amazed at the relative lack of oversight given it's most people's biggest investment ever

dottiepeas

We are ftb too, and from our experience- the quotes I got from the conveyancer used by the EA was alot more than many other local smaller solicitors. We chose a small local firm in the end, as they were £400 cheaper than the EA's in-house service!

It's fine to get quotes from the EA for surveying/mortgage/solicitor fees, as there's no obligation to use them......but defo go out and get your own quotes to compare for yourself!

suze_g

Thanks everyone. I have had about 4 different quotes and there isn't a lot between them. I'm going to go through all my paperwork this afternoon and have a good think over the weekend.

Bit stressful all this

Cat695

princeofpounds wrote: »

tied mortgage brokers are a big scandal and I wouldn't be surprised to see it legislated against at some point. It is a conflict of interest between the agent, working for the seller, and the broker, the buyer, if they are one and the same.

This caused a big, public problem at foxtons for instance where the brokers disclosed the buyers negotiating position to the agent.

Of course they are not meant to do this, and probably only want commission, but I would be wary. There is no particular advantage to you and you may get a better deal elsewhere. You can prove your position at any time without disclosing your whole status

I would *always* use my own solicitor.

It sounds like they see you as inexperienced and are being pushy as a result. Assert yourself politely.

I think POP hit the nail on the head....they may be working for you but by letting the EA know your financies they can squeeze some more out of you.

I think its in the buyers best interest to use an outside solicitor rather than the EA reccomended one.....at the end of the day all they want is your money.

suze_g

Cat695 wrote: »

I think POP hit the nail on the head....they may be working for you but by letting the EA know your financies they can squeeze some more out of you.

I think its in the buyers best interest to use an outside solicitor rather than the EA reccomended one.....at the end of the day all they want is your money.

I have had the offer accepted though already. The meeting was for a financial offer check, and the price I offered hasn't been increased as a result of it.