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Advice needed; Buying a property - mortage is AIP and now Connells want to introduce

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Advice needed; Buying a property - mortage is AIP and now Connells want to introduce

edited 30 November -1 at 12:00AM in Mortgages & Endowments
25 replies 9.2K views
paradoxiaparadoxia
80 posts
Forumite
edited 30 November -1 at 12:00AM in Mortgages & Endowments
I need some advice as I think there could be more to it than the estate agent/mortgage advisor let on.

I had my offer on a property accepted via Connells Estate Agents and as you may know they insist on getting you to come in to make the offer (with their mortgage advisor!!!)

Now I have an existing mortgage with Nationwide that is porting and additional borrowing is A.I.P. with Nationwide - quite straight forward I thought and all under control, I know exactly what I want already.

Now Connells are pushing us to allow them to process the mortgage through their intermediary as Nationwide is on their pannel of lenders and this will speed up the process, gets us the same deal and will not cost us any extra? (I presume they will use their inhouse surveyor owned by the group - and they will get commission from Nationwide for putting the business their way.)

Now am I right to be cautious ... The Mortgage advisor told us he gets 10% of the commission for putting the business through... I see the downside as they will use their surveyor who may be quite highly priced... any advice please???
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Replies

  • herbiesjpherbiesjp
    8.5K posts
    Forumite
    You should not feel pressured into doing anything you do not want to.

    If you want to go direct to Nationwide then just go direct
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • I don't feel overally pressured... I know I'm still in control and can say Yes or No

    My question is why do Connells want to take it over? Is it just for £250 commision on the new business and the fact that the survey is then done in house and charged at their rate?

    Does anyone know how much Connells charge for a survey on 160k value property ?
  • Leon_WLeon_W
    1.7K posts
    Forumite
    Part of the Furniture
    ✭✭✭
    Connells will get a kickback on the survey but I believe the charge to you will be exactly the same as Nationwide charge.

    Connells will obviously have a vested interest in your mortgage going through smoothly as they wont get paid untill the sale goes through so you may aswell let them arrange the mortgage in my view. Beware of all the insurance they'll try and add on though !

  • Mr_helpfulMr_helpful
    3.2K posts
    Forumite
    You dont have to do anything through them they are just after the extra commission and it probably wont be faster either. I have known EA's refuse to submit offers or send out details of houses unless the person deals through their in house mortgage adviser. Its illegal but it doesnt stop them
    I like to give people as many choices as possible to do what I want them to. (Milton H Erickson I think)
  • Nationwide will charge £340 to arrange and implement the survey, gotta find out how much Connells will charge now - I'm thinking it will delay the mortgage and move as Connells has to go to an intermediary whilst I have it all arranged with the branch already - also I am a nationwide employee
  • just has Connells leave me answerphone message this morning ... have I decided thats the 3rd contact in as many days!!!!
  • AndrewSmithAndrewSmith
    2.9K posts
    Forumite ✭✭✭✭
    paradoxia wrote:
    I need some advice as I think there could be more to it than the estate agent/mortgage advisor let on.

    I had my offer on a property accepted via Connells Estate Agents and as you may know they insist on getting you to come in to make the offer (with their mortgage advisor!!!)

    Now I have an existing mortgage with Nationwide that is porting and additional borrowing is A.I.P. with Nationwide - quite straight forward I thought and all under control, I know exactly what I want already.

    Now Connells are pushing us to allow them to process the mortgage through their intermediary as Nationwide is on their pannel of lenders and this will speed up the process, gets us the same deal and will not cost us any extra? (I presume they will use their inhouse surveyor owned by the group - and they will get commission from Nationwide for putting the business their way.)

    Now am I right to be cautious ... The Mortgage advisor told us he gets 10% of the commission for putting the business through... I see the downside as they will use their surveyor who may be quite highly priced... any advice please???


    Double check that there are no extra costs to you for this. I know the Connells system inside out and, from my experience, they have a flat fee scale for valuations using the Connells surveyors irrespective of the fees charged by the lender.

    In the past it has been the case where a lender on the Connells panel has offered a free valuation but the Connells broker has 'sold' the benefit of using the Connells surveyor (which they instruct immediately before your case is sent to Leighton Buzzard for processing) but have charged a fee for doing so, thus leaving the client out of pocket.

    Andy
  • toonfishtoonfish
    1.3K posts
    Forumite
    paradoxia wrote:
    just has Connells leave me answerphone message this morning ... have I decided thats the 3rd contact in as many days!!!!

    this is the problem when they are desperate for business - no Connells near me but Countrywide act in exactly the same manner, promising the clients "exclusives" that aren't, claiming (wrongly) they can get an offer out more quickly and ripping them off with excessive protection premiums.

    Do what you feel comfortable with.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it.
    This signature is here as I follow MSE's Mortgage Adviser code of conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.



  • AndrewSmithAndrewSmith
    2.9K posts
    Forumite ✭✭✭✭
    paradoxia wrote:
    I don't feel overally pressured... I know I'm still in control and can say Yes or No

    My question is why do Connells want to take it over? Is it just for £250 commision on the new business and the fact that the survey is then done in house and charged at their rate?

    Does anyone know how much Connells charge for a survey on 160k value property ?

    Connells want to take it over for a number of reasons.

    1) Valuation and survey business is very profitable to them as a group (the parent company being Skipton)

    2) The Adviser gets 10% of the procuration fee as a commission on top of his salary (and rightly so if he /she does the job well)

    3) The residential sales branch manager gets a cut of the commission as well

    4) The Adviser's business levels are targetted and he/she will receive enhanced commissions (hit bonuses) at certain levels

    5) Connells have agreed with the lenders on their panel to submit a certain amount of mortgage business via their intermediary channel, in return those lenders will use the Connell surveyors and allow the Skipton group to, in some cases, administer insurance products for Indemnity and Buildings & Contents. Also Connells Group (including Fox & Son's, Allen & Harris, Roger Platt, William H Brown, Barnard Marcus, Gribble Boothe Taylor, Bagshaw's Residential, Sweetnham's, Brown & Merry, Jones & Chapman, Manners & Harrison, Shipways) are likely to get a reasonable bit of the cherry on any reposession properties from the lenders on their panel as well.

    It is all about the corperate relationship between the lender and Skipton group and is far more involved and incestuous than a simple Commission for the mortgage.

    Andy
  • Poppy9Poppy9
    18.8K posts
    Forumite
    There is no benefit for you so tell them you are an employee of Nationwide, it's AIP so you don't need their help.

    I hate businesses trying to 'force' me to use their services.
    :) ~Laugh and the world laughs with you, weep and you weep alone.~:)
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