Won't Formally Accept Offer until we have seen Advisor

Nelly321

Me and my Gf have put in an offer with the estate agent, and there are also 2 other offers (apparently)

They said that none of the others would be accepted until we have all been assessed by their mortgage advisor...

We are the last to see him and it is 10am tomorrow!

Is this all pretty normal?

Cheers

easilydistracted

From what I know as a FTBer myself, EA can not refuse to pass on offers, that's illegal. And the reason they are requesting you see their in house broker is to sell you deals that might not be the best, as well as establsing how high you can offer to play you offer against eachother.

Do you not have an agreement in principle? This will certainly help you be taken more seriously. Then you can say no thanks, I already have my deal, please pass the offer to the vendor as required.

If they refuse that and you are feeling cheeky, put a letter through the door letting vendor know you've made offer to EA and are proceedable.

Yorkie1

Are they a member of an EA's professional association.

It is against the EA Act for them to do this, unless they have specific instructions from the sellers not to pass on any written offers without the prospective purchasers having seen the in-house person.

Are your hearts really set on this house?

There is the clear risk of a conflict of interest for the EA advisor; no matter how much they say they they are independent of the EA, this is patently untrue because on the EA's own account the view on your proceedability logically has to be passed on to the EA before the offer will be put forward.

I'd be minded to go along, say that you've got an AIP and that you are willing to see whether they can better your offer if and when your offer has been agreed, but until then you are not prepared to disclose your finances or maximum AIP while negotiations are under way.

It's a shabby business and I'd be minded to drop the letter through the seller's letter box too - assuming I didn't mind if I didn't get the house.

Nelly321

Thanks!

Yes I have a AIP from Natwest (My Bank) and I do feel more comfortable with my own bank even if it isn't the cheapest.

Our borrowing limit is also 2x what we actually want to borrow so I imagine they will twig on there then they have already hinted to me that we should increase but I don't believe him.

They want to see payslips and AIP's to verify our financial status... I know he is going to try and 'sell' me a mortgage so I will act interest just in case.

It shouldn't matter who I am lending the money off to get the offer accepted, but I have a feeling that they will 'recommend' the best offer to the seller for their benefit ...?

Nelly321

They did say that they were protecting the seller as a previous offer fell through as the couldn't get a mortgage...

Thrugelmir

On a personal level I've encountered time wasters over the years. So have requested that the EA vet applicants.

There's no obligation to use the EA's recommendation of mortgage advisor.

ACG

http://www.oft.gov.uk/shared_oft/estate-agents/ea-buying.pdf

Read page 3
Might even be worth taking it with you.

They cant force you to meet their broker. They can qualify you as a buyer but that should be nothing more than seeing proof of deposit and/or an agreement in principle.

On a side note, could be worth reporting them. Theyre effectively blackmailing you to try and sell their mortgage/insurance services to you.

EDIT: There is nothing wrong with seeing a broker, but it really should be a choice you make, not something your being pushed into.

Nelly321

I will make sure I tell them that I am only there to verify my financial credentials.

I can get a pretty good deal by shopping around the mainstream banks I'd have though.

SG27

We had to go to go and see the EA mortgage advisor. But only after our offer was accepted. I told them my deal I was applying for and she said she wodnt be able to get any where near that so it was quite a short meeting.

I wouldn't have shown them any financial information and politely explained this to them.

Tenyearstogo

Make sure you send a letter to the vendor with your offer on and letting them know you have an AIP.

That way they'll be aware if the EA is lying to you.

Nelly321

I am hoping it will be a short meeting today! I will let you all know how it unfolds.

I have my rates/repayments from Natwest, and Halifax to show too.

It might be a bit late to send a later, I think offers will get accepted on Monday...?