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Estate Agents and pressure to use their brokers

We are seeing increased incidence of Estate Agents trying to pressurise buyers into using their in-house mortgage brokers.

Two clients we are dealing with currently were told by separate Estate Agents that their offers would not be put forward unless they agreed to meet with the Estate Agent's mortgage broker.

If this happens to you then you should remind the Estate Agent that such an approach is contrary to the Office of Fair Trading Guidance on property sales (OFT 1364) which prohibits pressurising a buyer into using associated services.

Not just the firm, but the individual employee can be prosecuted for such a practice.

Be bold and do not accept sharp practice.
I am a Mortgage Broker

You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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Comments

  • We provide clients a brochure on the subject, containing extracts from the relevant act and they can toss it on the agent's desk should they wish.
    Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam
  • MJP43
    MJP43 Posts: 61 Forumite
    Back in 2011 this practice lost me a buyer.

    It was typical of the appalling service the Estate Agent overall.

    I will mention no names. BURCHELL EDWARDS
  • Let_Us_See
    Let_Us_See Posts: 1,319 Forumite
    On the few occasions my clients have hit this problem (almost always young, inexperienced FTBs) I simply knock on the vendor's door with my client's offer, and explain the lack of service from their selling agents. ;)
  • amnblog
    amnblog Posts: 12,771 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    edited 16 January 2015 at 12:29PM
    But tricky for us with clients from Perth to Plymouth.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • stator
    stator Posts: 7,441 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    :mad: :mad: :mad::mad: :mad: :mad: :mad: :mad:
    :mad: Estate :mad: Agents :mad:
    :mad: :mad: :mad::mad: :mad: :mad: :mad: :mad:
    Changing the world, one sarcastic comment at a time.
  • Let_Us_See
    Let_Us_See Posts: 1,319 Forumite
    ...........or applicants!
  • Madbags
    Madbags Posts: 222 Forumite
    Our Estate Agent in Plymouth mentioned a few times about their in house broker, how lovely he was, how good he is and all that garbage. There was no "we had no choice" element to it but they didn't half go on about him like he was sent down from heaven.


    We didn't even use a broker at all in the end and approached the lender direct as we got a free 1 hour consultation with another Estate Agent's First Time Buyers Centre in the first instance and got all the information we could possibly have needed in that consultation :)
  • Dave_Ham
    Dave_Ham Posts: 6,045 Forumite
    Tenth Anniversary Combo Breaker
    Madbags wrote: »
    Our Estate Agent in Plymouth mentioned a few times about their in house broker, how lovely he was, how good he is and all that garbage. There was no "we had no choice" element to it but they didn't half go on about him like he was sent down from heaven.


    We didn't even use a broker at all in the end and approached the lender direct as we got a free 1 hour consultation with another Estate Agent's First Time Buyers Centre in the first instance and got all the information we could possibly have needed in that consultation :)


    Nice.......!
    I am a Mortgage Broker
    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it.
    This signature is here as I follow MSE's Mortgage Adviser code of conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    amnblog wrote: »
    We are seeing increased incidence of Estate Agents trying to pressurise buyers into using their in-house mortgage brokers.

    Is this a sign of the declining activity in the property market?
  • stator
    stator Posts: 7,441 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Thrugelmir wrote: »
    Is this a sign of the declining activity in the property market?
    No, it's bricks and mortar trying to make money because they can't compete with the interwebs.
    Changing the world, one sarcastic comment at a time.
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