Estate agent won't allow viewings until after a mortgage interview!

Mrs_Money

Some relatives of mine are househunting for their first property - an estate agent for one such property they are interested in has said they will not book a viewing for them until they have a mortgage interview with them! They have a mortgage arranged in principal anyway with a local branch of their Building Society - so don't need this.

This is a new on me - I thought it was absolutely priceless!!!!! I wonder if the vendors know this EA is putting off potential buyers like this?

Anyone else come across this situation?

hazyjo

I'd definitely let the vendors know. In this market, they'll be wanting all the viewings they can get, I'm sure!

Hate it when they do this. Yes, it can happen, but it's got naff all to do with them unless the viewers make an offer. Grrrr. And, even then, they should just be able to get a letter saying the property's affordable. They don't need to let the EA know what the maximum is they can go up to!

Grrrr.

Jx

TOBRUK

I agree with hazyjo, and I would never go for a mortgage interview with the vendors' estate agents - it's none of their business!

I don't want them to know how much I can actually go to - the last thing you want is for the estate agent know your hand! Any negotiating you do on a property would be compromised.

donnaessex

Yep, tell them to knock on the vendors door/write a note to them to tell them that they would love to view the property but the EA has told them they are restricting viewings to people who have spoken with their inhouse mortgage advisor.

I'd be furious and be giving the EA notice straight away!

maninthestreet

The OFT Estate Agents guidelines state:

You must not discriminate against potential buyers because they don't want, or might refuse, to take services from you or a connected person.
For example, you must not:

• refuse to provide information about a property to these buyers
• take longer to send property information to these buyers, compared to others
• set additional requirements, as a condition of passing on an offer, eg, forcing them to have a mortgage survey before you will pass on their offer to your client.

firstaspect

I'd tell them that I'm not going to have a mortgage interview and would they please book in a viewing. If they still refuse I'd say that I'll be going direct to the vendor instead.

tbs624

I would do as others have suggested and talk direct to the vendor as a first step.

The EA may be in breach of the Estate Agents Act - they have to treat all potential buyers "fairly". You could talk to the local Trading Standards Officer, NAEA, and/or the Property Ombudsman for further information.

Mrs_Money

firstaspect wrote: »

I'd tell them that I'm not going to have a mortgage interview and would they please book in a viewing. If they still refuse I'd say that I'll be going direct to the vendor instead.

yes, that's exactly what I told them to do - even if they have to slip a note through the property's door!
I'm glad I'm not the only one who thinks this is shocking (but not surprising) behaviour!
Bl**dy estate agents - it's when you are looking for a property that you realise just how little they do for the vendors!

googler

There's always the (remote) possibility that the EA has been instructed by the seller to filter viewers by this method - but where does that leave them with respect to the OFT guidelines?

maninthestreet

googler wrote: »

There's always the (remote) possibility that the EA has been instructed by the seller to filter viewers by this method - but where does that leave them with respect to the OFT guidelines?

The OFT guidelines take precedence over vendor requests.

tbs624

The OFT guidelines are based on the Estate Agents Act 1979,& amendments.

They state, quite clearly:

Avoiding bias
You must not discriminate against potential buyers because they don’t want, or might refuse, to take services from you or a connected person, or someone from whom you or a connected person may receive financial benefits.

For example, you must not:

refuse to provide information about property to these buyers
take longer to forward property particulars to these buyers than to others
make additional requirements of these buyers as a condition of passing on an offer - for example, make them have a mortgage survey before you will pass on their offers

OP - if you want to pass a relevant link on to the EA - see here http://www.oft.gov.uk/shared_oft/business_leaflets/general/oft031.pdf