In-house mortgage advisor confidentiality?

Yanman

I called in at an estate agent recently and registered details to look at houses up to 140k and was persuaded to make an appointment with their in-house mortgage adviser for about two weeks time. During this two week period I recieved details of several properties up to 140k.

Two weeks later, the mortgage adviser took my details and told me I could easily borrow up to 180k and secured an agreement in principle for this level. The adviser informed me that this financial information was confidential and would not be disclosed to the estate agent. Despite the level of the agreement in priciple I decided I would stick with a 140k limit to ensure that I would not be stretched financially.

Within two days of this I received several details from the agent relating to houses up to 190k. I have since found a property that I am considering making an offer of 130k on but am concerned that my finances have been disclosed which may affect the chances of the offer being accepted.

Obviously this may just be coincidence but I wondered if the confidentiality agreement with an in-house mortgage adviser is normally upheld or is it common practice to share such details within the estate agency?

Thanks.

Milliewilly

Usually the in house 'independant financial advisor' is actually an estate agent for the same firm too. I agree it looks very fishy which is why I never use the EA Financial advisor or solicitor.

No help to you now but I would ask the EA to explain why they are sending you properties at that level - is the vendor willing to reduce by the best part of 1/3 rd on their property is that the message from the EA??.

DVardysShadow

Never ever as buyer deal with your seller's agent's Mortgage Advisor.

As seller, be very suspicious if your buyer is using the agent's mortgage advisor, because they may possibly not pass on other offers from buyers who have sourced funds elsewhere.

nublue

Hi, I reckon that you may be right, they have "accidentally" left some papers lying around which may have given the EA a clue. However, at the end of the day they may try to squeeze more out of you, but it is up to you to decide whether to let them, they may come back to to you for more, but if that is all that you are willing to pay then say that. They then have the choice to accept or not.

In future though I would suggest avoiding anything inhouse!

theartfullodger

Agreed: He works for the EA, he will do what suits the EA, don't trust him!

Cheers!

Lodger

chrigil

Exactly as the artfullodger says; he works for the EA first, the seller second and you third.

Seeing as you are the one ultimately paying the estate agent both the property selling fee (in so much as the more it sells for the more the EA gets) and the mortgage (again the EA is likely on a percentage of amount borrowed), who do you think is first on the list to get shafted?

I seem to remember a case around 10 years ago whereby a mortgage broker company that was ultimately owned by a major estate agent (without naming names the company was arguably the biggest EA in the market) was passing financial details onto the EA in order to inflate the sale price.

theartfullodger

I'd never use the "mortgage adviser" of any EA I was buying or selling from. Anyone else, but not them.

NB Re. "IFA"'s. There is no such thing as an "Independent" Financial Adviser: They are all dependent on something, either commission from financial organisations, fees from you, kick-backs from EAs...

Cheers!

Lodger

Doozergirl

The price you pay is ultimately based up on how much you believe a property is worth. The argument of being able to afford more is very easily quashed by the fact that you don't think the property is worth more. they can't make you pay more. Ultimately, an EA is after a sale. getting a bit more out you, here or there doesn't make much commission for them.

Coincidence or not, I wouldn't think about it anymore.

jassco

Personally, I'd consider viewing the houses for £190k and just keep putting offers in for £140k (if they're worth that much), reminding the estate agent that 140k is the limit you discussed with him and thought that because he'd sent you properties, they'd fall within this range.

My views are slightly biased though, and should probably be ignored as it'll anger the EA

Yanman

Thanks for the responses everyone. It seems it was a mistake to use the EA mortgage adviser but in line with the advice given I will stick to my own level and may indeed play them at there own game with regard to low offers (you never know!).

Thanks.

Ignite

Chatting with a couple of independant mortgage advisors, I was told that even though the Estate Agents financial advisor calls themselves independant, they only have a limited panel of lenders - ie the ones that give them the most commission. At the end of the day, you are likely to not get the best deal going through them.

When we were looking, we had a couple of agents who insisted on making appointments with their financial advisors. One of them said "So when can we make the appointment for?" My reply was "Any time you like. We won't be turning up though." Fox and Sons still kept bothering us with properties way outside our price range though and trying to book in appointments.