Estate agent trying to push me to meet with mortgage broker

jw2003

I have seen this written below some adverts with an agent where we are looking. My plan was to explain that we are currently in a fixed-rate deal which allows the flexibility to move and increase the loan amount but the early redemption charges are so high that it would wipe out any potential saving from a lower rate

DVardysShadow

Green_Jelly wrote: »

The problem is that until I provide financial information (EA told me I would need to provide at least the AIP plus details of where the other money is coming from) to that mortgage broker, they are saying that they will not put an offer forward.

Should I have to do that? It would seem to undermine my negotiating position. And, are they allowed to do that?

Only if you let them.

At this point, a number of thoughts run through my mind. You could take the appointment under protest and refuse to answer any questions or show any documentation. You could put in an offer and mention Section 6C of the Ombudsman's Code as suggested by moneysavingplumber. Or you could put in an offer and put a copy through the vendor's door. Or you could tell the agent that if they do see your AIP, then you will only make a non-negotiable offer.

To a certain extent they hold all of the cards except the last one. If the vendor has been nobbled by them and buys their story, then you have no redress for them not passing on an offer. It is only the vendor who has any claim against them for not passing on offers, so there is not much you can do about that. Except possibly put a note through the vendor's door to say that you are minded to offer, but you thoroughly resent the Agent's intrusion into your own financial affairs.

You need to be strong enough to walk away from this house.

Yorkie1

If I recall an AIP correctly, it states the maximum amount which that particular lender would lend based on your general details.

Thus it is often likely to be more than the actual offer put forward.

I wouldn't want an estate agent knowing the maximum I could afford - it could affect the EA's / vendor's views on whether to accept my offer or try to push me further.

_Andy_

In the words of the Grange Hill anti-drugs song from the 80s - "Just Say No."

Green_Jelly

_Andy_ wrote: »

In the words of the Grange Hill anti-drugs song from the 80s - "Just Say No."

Yes, I think that you might be right. As far as I am concerned this is funny business, I'm not impressed by the agent trying to pull it, and I wonder what else they would try to pull.

I have looked up reviews of this chain of agents, from both buyers and vendors and they are overwhelmingly negative.

That said, if I do decide that it is the house I want, I am loathed to let their games get in the way.

Even if I don't want the house, I am the type of person who will stupidly waste their own time to try to ensure people don't get away with such bad faith, which is why I am inclined (and almost certainly will) take the time to make sure that both the vendor and the Property Ombudsman are fully aware of what is taking place.

If what they are doing is legit, fine, if it's not, then I am happy to take a bit of time to make life difficult for them.

I found an article (on the ThisIsMoney website) that seems to suggest that at least one other agent was caught doing this, with the aim of getting financial information from buyers. I can't link to it here, because I am a new user, but you'll find it if you Google the following:

"Beat the estate agent mortgage traps"


Thanks again for all the input.

chris_m

Ankatden wrote: »

I would meet their adviser and be polite you already have an agreement in principle, satisfies EA requirements, never know IFA could get you a better deal than currently you are on.

You really think that an estate agent's tame mortgage advisor is going to be an IFA?
If so, I know of a nice bridge I could sell you :rotfl::rotfl::rotfl:

DVardysShadow

Green_Jelly wrote: »

I found an article (on the ThisIsMoney website) that seems to suggest that at least one other agent was caught doing this, with the aim of getting financial information from buyers. I can't link to it here, because I am a new user, but you'll find it if you Google the following:

"Beat the estate agent mortgage traps"


Thanks again for all the input.

http://www.thisismoney.co.uk/mortgages-and-homes/mortgages-features/article.html?in_article_id=508027&in_page_id=58

Ankatden

chris_m wrote: »

You really think that an estate agent's tame mortgage advisor is going to be an IFA?
If so, I know of a nice bridge I could sell you :rotfl::rotfl::rotfl:

No doubt you will provide evidence they are not ?

iB1

Yorkie1 wrote: »

If I recall an AIP correctly, it states the maximum amount which that particular lender would lend based on your general details.

Thus it is often likely to be more than the actual offer put forward.

I wouldn't want an estate agent knowing the maximum I could afford - it could affect the EA's / vendor's views on whether to accept my offer or try to push me further.

My AIP from the Post Office states how much I have asked them to lend me, not the maximum amount. So if the OP's AIP is like mine, then he should be OK, as the EA would be none the wiser about what the theoretical maximum would be.

arthur_22

One EA I spoke to were extraordinarily keen for me to talk to their mortgage broker, and insisted I have a 'comprehensive financial check' with them. So I had a chat with said broker, told them vague but positive things about my situation (deposit around this percentage, salary over this amount) and then said any other details would be confirmed by my own broker, and gave them his details. They never called him, even after I had an offer accepted on the property, so they never saw a single bit of proof that I could afford the property. Comprehensive financial check my bottom - they wanted to know how much I could spend.

ps: my AIP showed the full maximum they would lend me.