You can't offer unless you speak to our in-house mortgage broker....

B19jon_2

Hi folks,

It's been 5 years since I last made an offer on a property and I know we are in a different world now, however we have just sold our property, we have seen a property we want to purchase and have at agreement in principle from 2 x highstreet banks for the mortgage. I will be sourcing the mortgage through an independent broker who I will be seeing tomorrow

I have phoned today to make an offer and been told that the only way I can make an offer is to go and speak with their in-house mortgage broker so they can complete their own mortgage agreement in principle.

Is this now a common practice? Why should the estate agent need to know our full financial history and borrowing power, surely they will just use this against me as they will know how much we can afford?

I can't believe in this market they are willing to turn away proceed-able offers until we have jumped through all the hoops!!

Is there anyway around this?

Thanks,

Jon

GuidoT

That is wrong.

Have a furrage around online and see if the property is on with another agent and if so make the offer through them.

Failing that pop in and see the vendor (providing of course they live at the property) and let them know what the agent is upto.

BFM

we got caught up with this when we bought 18 months ago.

we could go with a different provider, but the only way the RE would take the listing off the website was if we went through their mortgage broker.

i didn't think that was very fair, but we went along to see what rates the broker could get us compared to what I'd sourced beforehand.

their broker was actually able to get a slightly better deal than i had proviosionally got so it was an easy call as we loved the house we wanted to buy and had to get ti off the market.


it was explained that we had to go in and see the RE broker, but i'm not exactly sure what would have happened if he was not able to beat or match the mortgage i could have got myself. can't believe that the RE would be able to veto an offer if you didn't go through the RE broker though, think all they might threaten is that the property will stay on the market longer while surveys are done etc.

googler

Look up the NAEA and TPO codes of practice with google, and take along, with your written offer, a copy of the section in each code where it states that EAs should not discriminate against any buyer based on whether or not they take the EA's other services.

If they're not NAEA or TPO members, ask them why they think it's OK for them to act contrary to these industry-standard codes...

brit1234

You have to realise that you are giving all you important money details to the seller of the property ie the enemy.

Your showing your hand in a poker game, don't do it.

poppysarah

Just say no.

hazyjo

GuidoT wrote: »

Have a furrage around online and see if the property is on with another agent and if so make the offer through them.

Careful with that - if you've viewed through that first agent, the vendors will owe them commission for the introduction.

Just tell them you've sorted your own finances, thank you very much, and definitely aren't interested. If they say it's compulsory, tell them you know it's not, and let the vendors know. I doubt they're aware. They might, however, have asked the EAs to make sure anyone making offers is in a proceedable position financially.

Jx

epsilondraconis

poppysarah wrote: »

Just say no.

I agree with Zammo.

lindos90

This happens quite often, and you are spot on with your concerns, have a look at this thread..

https://forums.moneysavingexpert.com/discussion/2986932


The EA may want to check that your offer is sound but that doesnt mean giving all your details to the inhouse mortgage provider.

Get an offer in principal from a bank (which is lower than you actually plan to borrow).

Chances are once you have stood your ground and said you dont want to see their advisor but you expect the EA to pass your offer to the vendor (as is their legal obligation) they will not be interested in even seeing your OIP, their interest is really getting a sale and in getting you to see their mortgage advisor.

...and dont be bullied into using the solicitor they just happen to recommend, they are just wanting commision for that too! Get your own quotes and find personl recommendations for that.

tbs624

It's not simply about Codes of Practice - such behaviour is contrary to the law so you may like to suggest that the EAs familiarise themselves with the relevant Statute.

The Estate Agents Act (1979) covers this issue. The OFT's summary:

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.
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.

Send a formal letter of complaint to the top bod at the EA firm and report all EAs who try this one on - to the local Trading Standards Officer and to NAEA/TPO if the EA is signed up

From the NAEA Code of Practice:

General Obligations
You must comply with this Code of Practice. You must comply with all laws relating to residential estate agency - such as the Estate Agents Act 1997, The Estate Agents(Account) Regulations 1981, The Property Misdescriptions Act 1991, The Property Misdescriptions (Specified Matters) order 1992, The Housing Act 2004 and all other current and relevant legislation.

Discrimination
6c By law you must not discriminate, or threaten to discriminate, against a prospective buyer of the seller’s property because that person declines to accept that you will (directly or indirectly) provide services to them. Discrimination includes – but is not limited to – the following:

• • Failing to tell the seller of an offer to buy the property
  • Telling the seller of an offer less quickly than other offers you have received
  • Misrepresenting the nature of the offer
  • 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

Pass a written copy of your offer to the vendor as well as to the EA and make it clear that you are happy to provide proof that you have a mortgage offer lined up.

LittleMissAspie

It's silly really because an AIP doesn't prove you can get the finance, nor does it prove that if you can get the finance that you have enough for that house. We had a pre-approved mortgage (applied for it before we found a house to buy) and sent proof of it to the EA, but even then there's no proof that we had the cash to make up the rest.