IFA's, Estate Agents, Solicitors, Water Board

garythephotoman

Just thought I would post my experience of my rather bumpy ride in my house purchasing quest in the hope that it may benefit others.


1st call - the Estate Agents
Viewed my dream house and had my offer accepted. Took estate agents advice and hired the solicitors they suggested following their recommendation that they had received good reports about them. I later found out that they had a business interest with the solicitors and would receive a £50 plus vat rate of commission.
The agents will also not inform me if the property is freehold or leasehold and say that the information will be passed on to my solicitors at a later date. They also failed to supply me with a EPC (energy performance chart) until 2 weeks after I made the offer and despite frequent requests.

I have now reported all these issue to the local trading standards dept.


2nd call - The Mortgage
After reading the MSE advice for mortgages I contacted a IFA from London and Counties making sure that I asked all the relevant questions about whole of the market.
After several days of phone calls and giving the required information, I read my Key facts document about the mortgage that was recommended. I particularly noted that it said that it was the best product for me from the whole of the market. As I am the cautious type I read the MSE guide again and discovered that their was a website (money advice service) that showed the mortgages that the independents sometimes do not inform you about. I did mistakenly think that these would have been looked at by the IFA due to my constant requests about whole of the market. Anyway, I was amazed at how many deals I found that were better than the one I was about to take out.

I got back to the IFA to tell him of my findings, I was gobsmacked at his response which after he checked the deal out replied, 'Yes, that is a better deal than what I can offer. I am sorry, for some reason my computer did not find that one'. He could also offer no explanation as to why he did not inform of the other dozen or so better deals that he failed to mention.

As I really wanted to use a IFA rather than a direct approach to a lender I went to several local IFA's. I can only describe their conduct as shameful and borderline fraudulent. I specifically asked to be seen 'whole of the market' which they all agreed to do. However when they took me in front of their screen they said words to the effect of 'these are all the mortgages out there that we do', in other words, craftily getting out of the whole of the market issue. They then rant on and tell me what's the best deal for me until I say, 'well I know that the Britannia can offer me a better deal' - there faces are a picture. How can they get away with this? I am about to save myself £2500 in cheaper payments over a 5 year fixed rate. I dread to think how many others have been conned into thinking they have the best deal?

I have now reported the L&C IFA to the financial ombudsmen and informed them of the practices that I have found on the high street with other IFA's.

3rd call - The Solicitors
I received a letter from the solicitor stating that they were happy to do my conveyancing and that they must legally inform me that they have a 'business relationship' with the vendors estate agent who they will pay commission to for the referral.
Now I have little legal knowledge but I ask myself, how can a solicitor represent my interests if they have ties with the estate agent. For example, the estate agent did not supply me with a EPC or the info on if the property is leasehold or freehold along with making several minor other errors. I therefore may require the solicitor to 'motivate' the estate agent. Surely there is the possibility of a conflict of interests in this scenario.
This set up in my mind is ethically not right and I have reported the matter to the legal ombudsmen and SRA.

4th call - The Water Board
As the property I am arranging to buy is for myself, partner and our combined 4 children, finances are going to be tight and water usage high. I contact Severn Trent to ask how much they will charge to remove the water meter. They reply with, 'It has been in from when the house was built (15 years ago) it has to stay in. Is this yet another blatant rip off? Why are meters being put in new 4 bed houses where consumption is likely to be high and why can they not been removed? No issues of droughts in North Staffordshire either.

I have now reported this issue to the water board regulator, and while I was at it informed them that the water board website did not easily show a complaint procedure for the consumer. I also then mentioned that their own website did not make it easy to make a complaint as you needed to register first. Maybe this could have a bearing on why water related complaints are down.... or am I getting a bit cynical in my old age?


5th call - home and life lnsurance
Currently ongoing - wish me luck!!



Hope I don't come across as just a sad grumpy old man with the above moans but the issues found do get my goat up and I am generally not the complaining type.

budgetdiyer

1) How can you make an offer on the property if you do not know if it is freehold or leasehold?

They should have told you that they earn a fee for a referral, i recommend solicitors but earn no money from them, i prefer to recommend solicitors that i know will give my clients a good service and will communicate well with them and us (the agent) throughout a sale.

EPC's are a complete waste of time in my opinion but you should have been given one when you requested it.

2) I'm not sure i'd expect any IFA to be able to scan the whole of the market.

3) The solicitor is right to point out the referral fee, i wouldn't be worried about them not being impartial just because they pay a fee to the agent, its effectively an advertising cost to them.

Still if your worried, use another solicitor. My recommendation use a firm local to you, don't always go on cost.

4) Any property built since 1992 will have a water meter and i do not know of any way to have one removed.

G_M

I really don't know what you are trying to say. Most of these issues are commonplace and non issues.

1) EAs only know what the owner/vendor tells them. It is for you and your solicitor to check the legal Title, lease etc of the property. Of course, they should not mislead you, but saying they don't know is an honest answer.

EPC - fair point. Should be provided, despite being worthless/complete waste of time. Save your energy for fights/complaints that matter!

2) IFA - No IFA is truely 'whole of market' in the sense of having access to EVERY mortgage. The distinction is whether they are tied to specific companies (ie NatWest mortgage brokers will only sell NatWest mortgages). As with any large purchase, shope around and do research yourself.

3) Solicitors have codes of practice. The same solicitor cannot act for buyer and seller, but the same firm can, provided there is clear firewall between the individual solicitors - different branch offices. But personally I would
a) always use a different firm and
b) never use a firm recomended by an EA who gets commission.

But it is your business to make your decision about who to employ!

4) Water - once meters are installed, they can only be removed within the first year if the householder changes their mind. Water meters are the future - get used to it!

kingstreet

The term whole of market, as it applies to mortgage advice, is the best deal available which pays a commission to the intermediary. You will therefore not receive advice about products only available direct from lenders.

If you want independent advice, you seek a fee-charging broker who would agree a fee in advance with you to provide you with advice. If he receives a commission from a lender, this is rebated to you to reduce the fee you have agreed to pay.

Only an independent mortgage adviser will provide details of deals available both via intermediaries and direct from lenders.

betmunch

With regard to point 2, you sepcifically requested the Whole of Market service, then complain that they didnt tell you about deals that would only be sourced by an Independent Broker.

I'm afraid your quarrel here is with the FSA itself for defining "Whole of Market" as what is actually the whole of the commission paying market.

As stated by Kingstreet you need a fee charging service from an Independent Broker.

Sorry that your upset by this set up, its not our (the broker communities) fault.

princeofpounds

Don't forget that many of the deals you see advertised on mortgages are not really accessible anyway. 'Teaser' rates are common, because it gets firms into the best buy lists, but actual availability is very small in number and restricted to ultra low-risk borrowers.

Mortgage brokers will often have a sense whether you have a hope in hell of getting a particular package or not. Just because you meet the publicly available criteria doesn't mean that you will meet the private criteria for the mortgage company.

fannyanna

garythephotoman wrote: »

Hope I don't come across as just a sad grumpy old man with the above moans but the issues found do get my goat up and I am generally not the complaining type.

Erm, you do a bit

BitterAndTwisted

Most of the issues you have encountered are because of your own inexperience or naivety rather than legitimate complaints.

However I recommend that any newby prospective purchaser reads this thread and learns from your errors and misunderstandings.

SternMusik

garythephotoman wrote: »

Is this yet another blatant rip off? Why are meters being put in new 4 bed houses where consumption is likely to be high and why can they not been removed?

And why should the rest of society subsidise your water usage? Every property should have a water meter IMHO. I have one in my property, and being charged by how much I use has definitely made me more aware of water conservation. I have a rainwater collection tank in the garden, only put on a wash if it's a full load etc.

chris_m

garythephotoman wrote: »

5th call - home and life lnsurance
Currently ongoing - wish me luck!!

A few links that might come in handy after your 5th, 6th & 7th calls

http://www.financial-ombudsman.org.uk/
http://www.ombudsman-services.org/energy.html
http://www.lgo.org.uk/

maninthestreet

OP - are you sure property ownership is right for you? Fast forward six months time where the OP has actually bought the property and wants to sue the vendors or his own surveyor because the GAS CH doesn't work properly.