Estate Agents insists we speak to their mortgage broker

dfarry

Apologies if this has been asked many times before (I did search first).

I'm really pleased that an offer I made for a lovely property has been accepted... on the face of it at least it's perfect for our family

Everything is in place to move forward and my own buyer is a few weeks down the line now with their own buyer (a FTB). I have an agreement in principle with First Direct for the extra cash I need.

Just one thing though, my vendors estate agent wants me to go in today to have a chat with their mortgage broker to they say make sure that the funds are in place and then they can suspend all marketing on the property. I have said that I have an agreement in principle and that I have already spoken with brokers and the mortgage product is chosen. Insisted is perhaps too strong a word but they've made it clear that they need me to see the broker and at least show him my First Direct AIP. I have nothing to hide and don't want to jeopardise the purchase and lose the house but I don't see why I should tell "the other side" details of my finances, income, employment etc. etc...

Imp

It is reasonable for the seller's agent to see the agreement in principle before removing the property from market, to make sure you are able to proceed.

Other than that, it's sometimes nice to have a chat with new folk, talk about the weather, holidays, how their kids are doing. There is no need for you to go into your financial position at all.

Mrs_Bumble

They are required to verify that you are in a legitimate position to move forward with the purchase and so reasonable to ask for sight of the AIP etc.

Just don't be pressured into anything once you are there.

dfarry

Imp wrote: »

Other than that, it's sometimes nice to have a chat with new folk, talk about the weather, holidays, how their kids are doing

Hehe...

...OK will see how it goes later this afternoon, thanks

DVardysShadow

Mrs_Bumble wrote: »

They are required to verify that you are in a legitimate position to move forward with the purchase and so reasonable to ask for sight of the AIP etc.

Just don't be pressured into anything once you are there.

Who requires them to verify this? It is not a legal or regulatory requirement. We have recently bought and were not required to provide this info by the EA. Agreed it is common sense for an EA to establish that funds are available, but seeing their mortgage advisor is not the only way to do it. The vendor may insist that the buyer provide evidence, but they should not specify that it is done through the EA's own mortgage advisor, because as the OP correctly observes, this could prejudice their position with that EA for the sale in question or another sale, if that one falls through.

To the OP: I would provide evidence of funding to my solicitor and ask EA to confirm with solicitor.

maninthestreet

Just send them proof of the AIP via post - there is no need for you to speak to their mortgage broker. If you do, they will, no doubt, try to persuade you that they can find a better deal than the offer from First Direct you already have.

googler

Seconded, just copy your AIP, take a black marker pen to any personal detail that you don't want to pass on to them, and send/take the copy to the EA.

princessamy86

Although you never know, they actually might be able to get you a better deal. If it costs you nothing it can't hurt to have a look! And remember, it may not be coming from the EA, it might be the vendor who has asked that your financial status is verified. Most people are incredibly reluctant to show anything to an EA to do with finance, in my experience they are more comfortable to show a FA. That's cos we're all liars, cheats and general scum

chickmug

Following from the NAEA Code of Practise

Offers
a) By law you must tell clients as soon as is reasonably possible about all offers that you receive at any time until contracts have been exchanged (in Scotland, missives have been concluded) unless the offer is an amount or type which the client has specifically instructed you, in writing, not to pass on. You must confirm such offers in writing at the earliest pportunity and keep a written or computerised record of all offers you receive.

b) You must not discriminate, or threaten to discriminate against a prospective purchaser of your client’s property because that person refuses to agree that you will (directly or indirectly) provide services to them.

Discrimination includes the following:
• Failing to tell the client of an offer to buy the property.
• Telling the client of an offer less quickly than other offers you have received.
• Misrepresenting the nature of the offer or that of rival offers.
• Giving details of properties for sale first to those who have indicated they are prepared to
let you provide services to them.

• Making it a condition that the person wanting to buy the property must use any other service provided by you or anyone else.

c) You must take reasonable steps to find out from the prospective purchaser his source and availability of the funds for buying the property and pass this information to the client.

chickmug

DVardysShadow wrote: »

To the OP: I would provide evidence of funding to my solicitor and ask EA to confirm with solicitor.

On the face of it an good idea but from my point of view NOT. Most solicitors will not see this as part of their role. So they will drag their heels and so the agents would have to chase to get anything. As I say sounds a good idea but in releality one that would not of been acceptable to my firm or many others I suspect.

Mrs_Bumble

DVardysShadow wrote: »

Who requires them to verify this? It is not a legal or regulatory requirement. We have recently bought and were not required to provide this info by the EA. Agreed it is common sense for an EA to establish that funds are available, but seeing their mortgage advisor is not the only way to do it. The vendor may insist that the buyer provide evidence, but they should not specify that it is done through the EA's own mortgage advisor, because as the OP correctly observes, this could prejudice their position with that EA for the sale in question or another sale, if that one falls through.

To the OP: I would provide evidence of funding to my solicitor and ask EA to confirm with solicitor.

See later post re Estate Agent Code of Practice.