Estate Agents' Mortgage Advice

FTBann

Hi

I've been reading posts here for a while now and would just like to ask for some advice.

I've had an offer accepted on a property today.

I've already had a mortgage agreement in principle from my bank (I'm putting down 10% deposit), but the EA I am dealing with tells me that they can get me a better deal with a fixed rate mortgage through their mortgage dealer. They tell me that this is an offer available exclusively through them (as they would!).

However, I am understandably reticent about them knowing about my finances.....would they be able to subsequently apply leverage to increase my offer? So would I just be better off sticking with my bank?

I know that nothing is complete until contracts are exchanged, but would really appreciate some advice!

Thanks

Jorgan_2

Many people on here will tell you to stay away from the EA's broker as they pass the info regarding how much you earn etc onto the EA's to get you to put a higher bid in. I have worked in EA for 14 years & have never had a broker tell me how much a buyer is earning. I get told that the buyer can afford what they are looking to purchase, which is what i need to know. I can't comment on the EA you are buying thru but we are not all like the ones shown on the Whistlblower programme.

Likewise, the fact that you have seen the EA's broker can actually strengthen your case in getting the offer accepted, the EA will be able to confirm to his seller that you can afford the property.

I can see no harm in speaking to the broker to see if he can get you a better deal, many firms do get exclusive deals from lenders that can not obtained on the High Street or Internet, if it saves you money, thats a good thing.

FTBann

Thanks for the reply....I've had the offer already accepted, and all viewings should have been cancelled....my worry is that can they they turn around to me and say they want me to up my offer after seeing my salary etc, even though it's already been accepted? Or are they more concerned about whethet I can afford it (which isn't a problem).

Ta

devils_advocate

There's no problem in speaking to the advisors, provided you listen to them and don't tell them anything about yourself.

If they say "we could get a stupendous deal if you were earning £30,000" say to them "ok, lets assume i am earning £30,000, whats the deal?" If they um and ah, they're fishing for info. If the deal is on the table, with say a minimum salary of £30,000, get your HR department to say you earn more than £30,000.

If they say "we need to know your salary/ outgoings/ deposit to get the best deal" they DONT have a better deal than you have at present, just the possibility of on. With this in mind, you decide the way forward.

david29dpo

if you are happy with your present mortgage offer, stick with it. remember the agent is after his commission to sell you a mortgage. i despise this type of hard selling but it the way these days. dont get sucked in.

Jorgan_2

FTBann wrote:

Thanks for the reply....I've had the offer already accepted, and all viewings should have been cancelled....my worry is that can they they turn around to me and say they want me to up my offer after seeing my salary etc, even though it's already been accepted? Or are they more concerned about whethet I can afford it (which isn't a problem).

Ta

It all depends on the company concerned. Some agents will want to qualify you with their broker to ensure you can afford the property. After all, they may have recommended to the vendor that they accept your offer, if in four weeks time it comes to light that you can't afford it, the vendor won't be overly pleased.

Other agents will be targeted on the number of mortgage appointments booked, the ratio of property sales to mortgage sales within the branch etc. I worked very briefly for one corporate agency & was told by the Area Manager that the agency 'had to become a successful distribution channel for XXXXXXX mortgages & he didn't care if the office target for the year was made of financial services commissions or estate agency commissions, as long as I hit the financial services target.' I left a few weeks after that chat.

If you go & see the broker, go with an open mind, find out what deal the have in mind & what the rates are, if it is better than what you have already secured then investigate further. Know one can make you increase your offer.

FTBann

Thank you all for your advice...i think i'm just going to stick with my original bank! Much less hassle!