FTB - pressure to use estate agent's mortgage broker and solicitor

Eponym

Hi all

I made an offer on a property on Saturday for £118k (asking price £130k) with the expectation of hopefully ending up around £125k.

The agents have rang me today to say they have received at least one other offer and are trying to get a sense of where everyone is in terms of interest before they submit to the vendor and recommended a buyer. I have made my position clear:

• I'm a FTB so can move as quickly or slowly as the vendors want, and I live at home not in rented
• I have a 25% deposit
• I have a solicitor in mind following having got quotes
• I have an AIP.

My mortgage broker recommended getting an AIP from Halifax as it shows up as a credit search not a credit application, and would show vendors I can get the money. The idea was that when I have an offer accepted, I go back and we do a new search for the best deal at that time, as the best deal when he first looked would not necessarily still be the best deal.

The Estate Agent told me they do a free legal fees deal, where if you use their in-house mortgage broker and their recommended solicitor, they will give me a discount of up to £1000 off the legal fees. They also don't charge for legal work if it all falls through, though I would have to pay for searches and other non-refundable expenses.

My natural inclination is obviously that this is a bad idea, but given the competition for the property I want to show willing and it might actually help to show that I have good finances in place.

If I don't use their services, might that affect the advice they give to the vendor? I know I'm entitled to use any solicitor and mortgage broker I want but I just wonder if this might grease the wheels, so to speak. The discount would be nice but isn't the major factor at play.

Any thoughts? Thanks!

leespot

My initial thoughts are I had a similar experience with Move Residential, and subsequently withdrew my interest in the property as I didn't trust them at all.

It shouldn't 'grease the wheels' as you say, but it could. Although ethically that is not good practice it probably happens a lot more than anyone realises.

You seem fairly switched on as a FTB and you sound like you're level headed. The discount at the start might sound tempting, but getting a mortgage deal through their own broker that might have a higher interest rate would see any saving eaten up in the repayments in a very short amount of time.

Good luck with the purchase - if you don't get this one there will be others

kathrynha

When an EA says there is lots of interest in a property I generally don't believe them, especially when they suggest that you have more chance if you use a service which they will receive commission for.
Stick with your own solicitor and mortgage plans.

Eponym

Thanks for your thoughts. Certainly if I did use their broker, I would double check myself to make sure I was actually getting a good deal. I've had a quick look on a comparison site to see what current rates are.

My thinking is that I will go to the meeting but be a bit cagey and certainly not commit to anything. I want to show them that I am interested in the property and have good finances without revealing too much, which will be a difficult balancing act! I'll definitely have to ask the broker about his independence and whether he could pass the information about my finances (affordability etc) to the agent/vendor, who could then use it to push for a higher price.

I'm just concerned that if I say I'm not willing to use their services, and someone else who has offered is willing to, it might drop me down the list when they come to recommend an offer to the vendor.

Okydoky25

Having been in this situation I would say the EA is playing you. Tell them to submit your offer that is their legal duty.

Re the incentive. The money you "save" will be stalked up by their over priced solicitors and charges that their in house MA charge. You don't need the MA you have that covered

lee111s

Tell them to FRO and go with your own.

retepetsir

I had the same problem last year with the EA refusing to pass on our offer until we met with their in-house FA!

Put your foot down and make sure they pass on your offer to the vendor.

m0bov

Why not type a note/offer up, state what's happened and put it through the door of the property. Then the vendor can kick their a***s about not passing on offers for their own benefit.

Eponym

They haven't not passed on the offer - my understanding is that they are seeing who has made offers and what position everyone is in. They will then submit these to the vendors and make a recommendation based on a combination of price offered and who is best-placed to proceed.

My current thinking is that I will go to the meeting to show willing and demonstrate some proof of finances but not agree to anything. Does that sound sensible?

m0bov

Eponym wrote: »

My current thinking is that I will go to the meeting to show willing and demonstrate some proof of finances

You'll only look desperate, honestly just make your final offer firmly and move on. The property might not be the one for you and there are plenty others. I had the same situation like you, they never passed on the offer. I said the offer is valid for 24 hrs then I will move on and look elsewhere which is just what I did! Don't loose any sleep on it. :beer:

E._Tenebris_Lux

retepetsir wrote: »

I had the same problem last year with the EA refusing to pass on our offer until we met with their in-house FA!

Put your foot down and make sure they pass on your offer to the vendor.

So did they pass it on in the end?