Mortgage Advisor Told Estate Agent My Budget!

SloppySaver

Melissa177 wrote: »

I think I was totally out of line to even question Sloppy Saver's wiseness with anyone else, never mind ME, I'm a dumbass and a dokey (even though they mean the same). Tell me that Im a dumbass, and that's it.

I would demand that the EA explain why I'm personally a dumbass for information. And be careful about what you quote.

I couldnt say it better myself Melissa! :rotfl:

MortgageMamma

There shouldnt be an exchange of information like that between two unrelated companies - you may want to examine the paperwork you signed in the presence of the adviser and ask him/her to point out to you which part of the paperwork you signed to give consent for him to discuss your personal affairs with other estate agents - from my perspective thats a breach of the data protection act BUT, it depends on exactly what was said. If the offer came back as a decline and your adviser said "ok, well I know he can pay a bit more in his budget so I will ask if he can reneg" then thats not too bad but if he/she has blatantly said "mr x can pay anything up to £xxx" then thats crossing the line IMO. Whilst this may or may not be wrong, you would have great difficultly proving it unless either firm has a call recording policy.

I'm not saying all EA Mortgage Brokers are like this, I am sure that there are some good ones but this is common - just another good reason to use a broker who is independent of estate agencies as there is always a conflict of interest with in house brokers

Dithering_Dad

Hi Rich123,

Are you sure that the mortgage advisor told the estate agent that you could afford more than you were offering, or did they simply answer a question about whether you were a serious buyer or not (and hence stated that you could afford the asking price)?

Are you also sure that the rejection was based on knowing that you can afford the property at the market price or because as Sloppy Dumbass (nice one Hillfly :rotfl:) said was based on them thinking their asking price was fair?

Sorry, there just seems to be a lot of assumptions on your part, though of course you might have more info than you've posted?

Rick62

What the MA did (if he did) is completely in breach of the Data Protection Act (and probably in breach of some other FSA rules). Even had the MA been employed by the EA I would say it is in breach of Treating Customer Fairly.

As MM says, this is why you should never use MAs connected with EAs but should use independant advisors.

lush_walrus

rich123 wrote: »

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.

Sorry to just pick this out, but the issue re the MA and the EA discussing budget has already been covered in the end it might help you! EAs can see exactly what you can when they go and value a property and value it accordingly...IE: A property in need of renovation, will always appear on the market for a lower price than one exactly the same but completely modernised. So offers on properties still need to be realistic.

My guess is you went in too low, and the EA has called to check whether you are unable to afford the price the vendor wants or they feel is realistic or at your peak..If you were at your peak, then the conversation would probably have gone no further.

dankes

Hi Rich,

It doesn't matter how much you can afford, you don't have to pay the full asking price unless you want to nor use all or most of your budget. In fact, very few properties are sold for the asking price. I know because I'm buying a place and selling my current one.

The estate agent are basically trying it on and if that's how they deal with people, serioulsy, you're better off out of it. Don't feel pressured into offering more if it's not worth it. Also be careful if you get a surveyor through your estate agent or connected with your estate agent. It sounds as though your mortgage advisor and estate agent are connected so get an independent surveyor - your mortgage provider should have one they use. Once a survey is done - get a full structural one, which you will have to pay more for but is SO worth it - then you may be able to ask for more money off.

If I were you, and I've been gazumped and had offers rejected before, I'd tell them to stick it. Doesn't sound as though they've got loads of people clambering to buy the place so they may rethink your offer.

Don't worry about it, you'll find somewhere else if you decide to pull out of this one. You really don't want to be going into this deal with the estate agent thinking they can make you jump at their slightest instance.

Good luck with it. Am sending you positive vibes to find the perfect home.

geralddlp

I had this happen to me, I found it very annoying,

housebuying is a offer to sell and an offer to buy, if you think its worth what
you have offered stick to it, you're a first time buyer, and you've already got a mortgage offer in principle, this makes you a desirable buyer.

Don't be pressurised into paying more just because you can, pay more if you think it's worth it in the market you are looking at.

A lesson learnt, don't see mortgage advisers in estate agents, they can't make you, Connells have got into trouble for pressurising people into seeing their advisers. Remember the agent works for them not for you, the more they get the more commision they get paid. Really the difference is insignificant to them they will just want to do the deal and get the commission.

Anyway, Good luck,

I hope you get this or another house soon,


Gerald

spurs_nut

SloppySaver wrote: »

I couldnt say it better myself Melissa! :rotfl:

Oi, Sloppy-joe you dumbbum

Stop talking out of your backside.


Loser!

homer_j_3

Could I say as a MA in an EA that whilst i feel that I am a dying breed in terms of making sure that the customers needs comes before the company needs - I often have debates with the EA manager when the old "we work for the seller" line comes out. I always respond "I work for my client" and are clear in saying that its not always about what they can borrow, its what they can afford to pay back.

To be fair, I think the same rules apply regardless when looking for a MA. Ask yourself if they can they offer a good service (are they approachable, do they take time to explain things and try to understand your needs), can they offer a great deal (are they fee free, whole of market, work from a large panel or do they work from a small panel) and can you trust them?

I can quite easily name and shame every EA advisor in my patch because of the service, panel size or fees. Lucky for me and my client. I am an MSE'er and dont find profit over professionalism a motivater. I am still ashamed to be classed in the same profession as some of the advisers in my area who put everybody with Northern Rock in the first instance.

Rick62

Homer, you raise some good points about tied MAs often operating from a limited panel and being focused on excess profit (eg bigger commissions on valuations, lawyers, tied insurance etc), but who do you handle the conflict issue of the EA sales guys wanting to know how much purchasers can afford?