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

DRP

Eponym wrote: »

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?

The problem is- how can they give you sound advice about mortgages when they don't know your earnings etc..... you weren't going to tell them what you earn, were you?

JennGa

When we wanted to reserve our new build we had to speak to their financial advisor first. Just told him incomes and outstanding loan amount and he said it was fine and if we needed him he could find a mortgage for us.
We already had a broker lined up so went with them, haven't heard a thing about their own financial advisor since.

Bantex_2

DRP wrote: »

The problem is- how can they give you sound advice about mortgages when they don't know your earnings etc..... you weren't going to tell them what you earn, were you?

Why not?
What harm can it do?
Look like you are working with them and you are more likely to get what you want than if you act like a prat.

DRP

Bantex wrote: »

Why not?
What harm can it do?
Look like you are working with them and you are more likely to get what you want than if you act like a prat.

I wouldn't trust some EAs and some advisors not to share information.

Especially if they way they work is to try to force buyers to see their financial advisor.

Bantex_2

DRP wrote: »

I wouldn't trust some EAs and some advisors not to share information.

Especially if they way they work is to try to force buyers to see their financial advisor.

What would be the problem if they did share information?

Eponym

Hi all. Thanks again for your views.

I went to the meeting to seem willing, though I made it clear that I was not going to commit to anything there and then and I had my doubts about the entire arrangement. I didn't tell them my salary but did explain that I have a 25% deposit and have done affordability calculations to confirm I can afford the purchase - I don't see how giving that information can do anything but help.

The upshot of it is that the broker will tell the agent that I'm proceedable, which was the purpose (from my end) of going to the meeting.

He was a good salesman and I know the advice here was not to touch it with a barge pole but having got answers to my questions, it doesn't sound so bad:

• The lenders they don't look at are the same as the independent mortgage broker I spoke to.
• They don't pass any information on my finances to the vendor or the agent.
• The solicitors fees would not be much different (approx £100 more) than I have been quoted already by another firm. Downside of using their solicitors is that they don't have an office so I can't go in to see them, but the estate agents forward on any details I need.
• If I went with it, I would get the best part of £1000 back from the legal fees. Depending on the lender, that would either be knocked off the purchase price or given to me as a lump sum.
• If the sale falls through and it's not my fault, I'll have to pay for searches and so on but not for legal work.

I would have to pay £399 to the mortgage broker but it's a lifetime fee for advice, so if I went back to them to remortgage there would be no additional fee.

Of course, the other solicitors I had a quote from quoted about £100 less than this arrangement (though I presumably would have to pay twice if things fell through) and the mortgage broker I already had lined up was free, so actually this arrangement would only save me about £500.

Does that change anyone's views on it?

chris_m

Bantex wrote: »

What would be the problem if they did share information?

EA; "They're offering £165K"
Advisor; "Oh, looking at their finances, they could got to £185K easily"
EA; "Ah right, we'll see if we can push them to go higher"

Where's the problem in that?
:mad:

or am I just being cynical?

Yorkie1

I wouldn't sign up to those arrangements.

I would want to be able to speak directly and in person to my solicitor rather than go through the EA.

I'm not entirely convinced that taking money off the purchase price won't cause difficulties with the lender or on stamp duty.

The lifetime mortgage fee commits you to using this particular broker forever more, irrespective of whether they are the best for you.

Honestly, stay with independent advisors.

Mrs_Z

We have just put in a mortgage application via the EA broker which I never imagined to do in a million years. I know that I could have applied for the same mortgage directly to the bank and obviously not having to pay the broker fee (£125 upfront, + £125 on completion). But I rather liked the chap, he was young, he was not trying to b**t me and the lender he recommended was the one I had in mind anyway.

What changed it to me in the end was that I could get an evening appointment with him pretty much to suit me and not having to take additional time off from work. When I contacted the bank, it was over a week's appointment for evening or Sat slot. I figured that if things were not going smoothly, the broker would have a direct tel line to the bank and would be in a better position to get answers or crack the whip.

In the end I decided that paying £250 for the convenience is worth it. After all what is a couple of hundred pounds when you're spending £££ £££'s! Also, it looks good to the EA that we are using the broker. Yes, we could have afforded to put in a higher offer for the house but we worked out our max and stuck to it. Just because you can afford to buy something doesn't mean you will - and we made this clear to the agent (in a subtle way)....ie, just look at the old banger that I still drive

theartfullodger

I would thank them kindly for their offer & use ANYBODY BUT the agent;s tame broker or tame solicitor or surveyor...

They are all liable to more interested in keeping agent happy than you legal... or you getting best deal...

Cheers!