Mortgage Advisor Told Estate Agent My Budget!

rich123

Hi,

I'm in the process of buying my first house and I have now found a house which I would like to buy and obtained a mortgage in principle from Northern Rock.

I have today put in an offer for the property, for less than the asking price because in my opinion, it needs a bit of work. e.g. two new bathrooms and a new kitchen.

This is all quite standard and would seem straightforward.

However, I have obtained my mortgage offer through a mortgage advisor at an Estate Agent and I have put an offer on a property which is with a different agency.

I was then called by the estate agency selling the property and told that the offer had been rejected. She then told me that in the meantime she had contacted the mortgage advisor who I obtain my agreement in principle through and he had told her that I can afford more than I was offering!

Therefore, he has completely scuppered by ability to negotiate on the price and if I decide not to buy this property, I will be unable to negotiate on any other properties with both agencies, as they now both know how much I could potentially pay!

I'm not happy at all, mainly with the mortgage advisor (I can't blame the estate agent for asking) and I'm tempted to tell them all to forget it and I'll go else where.

I realise that I've learnt a harsh lesson and I shouldn't have told the vendor's agency who I was getting my mortgage with (thought it might show my intent) but is it common practice for that to happen and isn't the information I disclose to my mortgage advisor supposed to be taken in confidence? Or am I just being incredibly naive?!! I'm guessing it's the latter...

Anyone else had a similar experience?

Your comments would be much appreciated,

Cheers,

Rich

luckyfool

They shouldnt't have done it, but the bottom line is that it doesnt really matter. You could have an agreement in principle from a lender for a million pounds, it doesnt mean you should pay a million pounds for the property.

If you have used the fact that the property needs work in your negotiation and the figure you have offered is as high as you are willing to go then walk away and look for something else. Also just because the lender is willing to lend you more doesnt mean you have to offer more! You can tell them that you do not feel you can afford the monthly payment if you go any higher?

SloppySaver

yes, that's what I was thinking. Your argument for the reduction in house price was not based on your ability to pay, but on whether the house was over valued. Obviously the vendor doesn't think the house is overvalued and so has refused your offer. Sounds to me like you're trying to get a bit of compensation for a "miss-buying".

Get over it. Dumbass.

dunstonh

We cannot say that he/she shouldnt have told the estate agent. Whilst some mortgage advisers are not employed by the estate agent and they shouldnt disclose personal data without express consent, there are some that are employed and they can pass as much info between them as they like.

AndrewSmith

Dunstonh is absolutely correct.

When you see an adviser based in an estate agency that is employed by the same parent company you will usually sign a declaration at fact finding (initial meeting) stage. Within that declaration will be your authority for the information provided to be shared within the parent companies gorup of companies.

In other words you give permission for the adviser to give your budget to the Estate Agency.

If not emplyed by the parent company but merely working on a referral basis then they should not pass the info to the Estate Agency unless you have signed giving authority to do so.

The moral is read anything that you sign thoroughly.

rich123

Thanks for the response luckyfool, I agree, just because I have been offered more doesn't mean that I have to or want to take on a bigger mortgage. I'm just annoyed that the mortgage advisor has without warning told them them amount Northern Rock has said they are prepared to lend me. Again, I fully realise that this probably happens all the time and that it was my mistake to divulge the information but my question was really about whether I had any control over that information remaning confidential.

Which leads me on to your response, Sloppy. What are you trying to say? How have you come to the conclusion that I am "trying to get a bit of compensation for a miss-buying"? So you're telling me that based on my circumstances, I should be greatful that I am in a position to buy the house regardless of the fact that to make it habitable I would need to spend more money than I actually have above and beyond the cost of paying the asking price? It's got nothing to do with what the house is worth, I placed an offer based on my circumstances and that was rejected, I can't argue with that but the ability to save any money on this deal has been taken away from me because of the mortgage advisor. I'm not looking for sympathy, just clarification on the confidentiality of my financial situation.

Hillfly

SloppySaver wrote: »

Get over it. Dumbass.

You seem quite good at calling people 'Dumbass' in your previous posts SloppySaver. Maybe you should change your name :rotfl: :eek: :rotfl: .

rich123

Thanks for the responses.

The estate agency that I am dealing with the house purchase is not related to the estate agency that I am getting the mortgage through.

I understand that it more likely, that if I was buying the house and getting the mortgage through the same agency, that the information would be exchanged but that's not the case.

How would the mortgage advisor benefit from telling them anything other than, "Yes, he has an agreement in principle"?

SloppySaver

I love that word, Hillfly. You dumbass. Stop following me around these pages.

Melissa177

SloppySaver wrote: »

Get over it. Dumbass.

Does it make you feel better when you use the word "Dumbass"? Perhaps it soothes your ego to know that you are wiser and savvier than anyone else on this forum?

Melissa177

I think the Estate Agent was totally out of line to discuss your private financial affairs with anyone else, never mind another EA (even if the parent company is the same). Tell them that your offer is your offer, and that's it.

I would demand that the EA explain why they divulged personal information. And be careful about what you signed.