Need advice re: complaining about EA and mortgage advisor.

fimonkey

Sorry this is posted twice (in the house selling thread too). Wasn't sure where it should be.

It's a very long story but if you can help, please take the time to read and advise us, I'm so upset by this!

My sister and I are selling my late mothers house, vacant possession, and we put it up for sale with a local estate agents 9 weeks ago. We immediately had two viewings and two offers (within a day of the house being for sale) and we accepted the higher offer.

At the time of accepting the offer from the potential buyer we were told that she had a mortgage offer in principle, was a first time buyer and there was no chain.
We were happy to accept her offer on this basis, and we do understand the difference between a "mortgage offer in principle" and a "mortgage offer".

A couple of weeks passed and we became concerned that we had not been contacted by the mortgage provider to arrange their valuation survey. We asked the EA’s to find out what the position was.

We were told that the mortgage advisor attached the EA was arranging out buyers mortgage, and he had now recommended a different mortgage for our buyer with a company for which he had no agency (I don’t understand this bit, can anyone explain please? Apparently a mortgage advisor has to have an ‘agency’ with lenders to be able to go to them??)

Hence we had to wait whilst the mortgage advisor completed his agency application. Another week went by and we heard nothing so asked the EA’s to chase up again. This time we were told that the mortgage advisor’s agency application had been accepted and that the buyer had completed her mortgage application forms. Unfortunately, however, after the mortgage advisor had posted these forms the post box was apparently broken into and the application forms were stolen!! (I suppose this beats the age old excuse of ‘the dog ate it’)!

The mortgage advisor duly asked the buyer to complete the forms a second time and as far as we know these forms did reach their intended destination.

The valuation survey took place two weeks ago. We were told that the valuation had gone ahead and that the surveyor agreed the value of the house. We then expected that the buyer would be in receipt of a firm mortgage offer within a couple of days of the valuation. However, once again all went silent. When we chased the EA’s and asked them to confirm that a firm mortgage offer had been extended to the buyer and also an indication of the proposed completion date, the EA’s replied that the buyers solicitors were awaiting results of searches applied for on 4th April and that the mortgage was "proceeding". We again asked the EA to obtain a firm confirmation that the mortgage offer was in place.

Today we have once again spoken to the EA, and have now been told that our buyer does NOT have a mortgage offer in place. Further, the company she had applied to were not prepared to lend her 100% of the purchase price anyhow!!

This now puts us back to the very beginning with the house back up for sale (with viewings again tonight). Our (ex) buyer is terribly upset, having already paid out for a survey. However we cannot afford to wait around as this house is currently stood empty whilst we continue to pay buildings/contents insurance/water rates etc etc. We also need to have this sale completed ASAP due to probate laws and capital gains tax (another long sotry).

WHAT CAN WE DO ABOUT THIS?? It appears to me that the mortgage advisor is at fault, which body regulates mortgage advisors and how do we go about lodging a complaint please?

The potential buyer isn’t the brightest of the bunch, and she wants to meet us in person. (I’m not objecting to that). It appears she too needs to complain about this fiasco, again who would she direct this to?

Finally, have we any comeback on the EA’s? Seeing as the mortgage advisor is affiliated to them?

Many thanks in anticipation (and cheers for reading this epic)!

dunstonh

We were told that the mortgage advisor attached the EA was arranging out buyers mortgage, and he had now recommended a different mortgage for our buyer with a company for which he had no agency (I don’t understand this bit, can anyone explain please? Apparently a mortgage advisor has to have an ‘agency’ with lenders to be able to go to them??)

mortgage adviser sounds like they are tied or use a panel and he is going off panel. In other words, he isnt whole of market but has access to someone that can.

Or it could be a new firm who hasnt set up arrangements with the lender in question and has to set up the agency agreement. This however doesnt stop business or hold it up. Many companies where no agreement exists will take the agency arrangement with the application and do the two at the same time.

We then expected that the buyer would be in receipt of a firm mortgage offer within a couple of days of the valuation.

Not if other requirements havent been met yet.

WHAT CAN WE DO ABOUT THIS?? It appears to me that the mortgage advisor is at fault, which body regulates mortgage advisors and how do we go about lodging a complaint please?

What are you going to complain about? The fact that your buyer couldnt get a mortgage?

1) you cannot complain about the mortgage adviser as they have given you no advice.
2) it is not the fault of the mortgage adviser that your buyer cannot get a mortgage.
3) the FSA regulate mortgage advisers and would have no interest in a complaint from you. The FSA would forward your complaint back to the mortgage adviser or their company to deal with.

The buyer got a decision in principle but sounds like something turned up in underwriting (perhaps she didnt disclose debts or doesnt earn as much as she said) which has led to it being turned down. That said, the valuation doesnt tend to happen until after that stage so perhaps the valuation didnt come up to scratch. This is probably the most likely thing as it requires her to put more money down and from your post, that appears to be the problem.

I think you should be looking for a new buyer and discussing this with the estate agent.

fimonkey

Thanks Dunstoh, The valuation came up with no problems, both the buyer and estate agent told us this.

It just appears as though the EA's have completely messed us (the vendor) about, as well as the MA seems to have messed the buyer about. (But yes I understand the latter isn't our business to deal with/complain about).

In terms of 'dicussing this with the estate agent'.. what should we be asking for from them? Can we take this matter to a regulatory body in this case do you think? (We're not tied into the EA, only have to give them 2 weeks notice in writing, however we did a deal with them re: fee's. Going to another EA at this stage would cost us double, though we're seriously considering it)!

It's a WHOLE load of hassle that frankly we could do without, and now it puts extra pressure on us, and EA's wonder why they have such a bad reputaion!!

dunstonh

At this time, you dont know and legally are not entitled to know why the applicants mortgage failed. However, for it to go from a decision in principle to failure suggests something came to light that was not good.

It could be that the estate agent mortgage adviser just doesnt have the companies available to place the mortgage (a tied or panel adviser would suffer in tight lending situations).

I think you deserve some information from the estate agent. Remember they only get paid when it sells so their interests are aligned with yours. They are working for you and not the buyer.

At this moment, you have very little information and possibly some conflicting information as well.

Like any service industry, some are good, some are bad.

Rick62

The EA's job is to introduce prospective purchasers to your property and help negotiate a price. A good EA should make reasonably sure, by talking with the prospective purchaser that they can afford the property.

It appears that the purchaser had an agreement in principle, so the EA has hardly been negligent. The mortgage broker sounds a bit weak, but as you pointed out that is not your concern. Also under data protection etc the EA and MA should not be sharing client details, like a 'chinese wall'.

Frustrating, but this sort of thing is very common i'm afraid.

MortgageMamma

I'll be glad when the day comes that estate agents are regulated like us brokers. They won't know whats hit them. Imagine an EA on a TCF course? :rotfl: