Being Coerced to use Mortgage Broker on New Build Property

chapperspmc10

My partner and I went to reserve a Redrow property. We were told before we could reserve the property we MUST speak to "the new homes group". It was sold to us as "an advisory group". It turns out they are a massive mortgage broker.

After speaking to them and giving them very basic information only the said we were ok to reserve and would inform Redrow. 4 days later still not heard anything from Redrow. When I called they said they had not heard from newhomes. They said they would investigate and call me back. When they called me back they said New Homes had to investigate more in to our circumstances. I asked Redrow why they were giving us conflicting information and they couldnt tell me.

I advised the sales rep that my partner and I were already lookin at mortgage products with our mortgage broker who is a close family friend. The sales rep got very worried and started feeding me rubbish like "you want to be careful doing that" and "that will hurt your credit rating". I said asked her why "I HAD" to speak to and use this company. her reply was "because they are good and we use them a lot". I said to the sales rep that she was coercing me in to using them so they get a commission/payment which she denied. I am pretty certain I will not get the callback I have been promised by Redrow and my partner and I will not be allowed to buy the property we desire.

I am pretty sure this practice is illegal, or at the very least unethical. Has anyone else experienced this? and does anyone know which regulatory/body I can complain to? I have e-mailed Redrow and await their response.

ethank

Some sites are worse than others. My sister has just bought from a Taylor Wimpey site who use New Homes Group and they just 'qualified' her and said she was capable of getting a mortgage. She used a mortgage broker who I had recommended. They did not care once she had been qualified.

bris

They want to make sure you can complete the purchase so you need to prove you can.


Get the mortgage in place and go back to them, if Newhomes are dragging their feet go over their head.


It's normal that sellers will always pick buyers ready to proceed over ones that don't have a mortgage in place. However it may just be that you are jumping to conclusions, accusing them is certainly not going to help your case.

Wi88le

bris wrote: »

They want to make sure you can complete the purchase so you need to prove you can.


Get the mortgage in place and go back to them, if Newhomes are dragging their feet go over their head.


It's normal that sellers will always pick buyers ready to proceed over ones that don't have a mortgage in place. However it may just be that you are jumping to conclusions, accusing them is certainly not going to help your case.

I think you are being a bit naive here, you can prove you are a procedable buyer without using the sellers mortgage broker, there's enough posts of people being forced to see them if they want the house even if they already have finance in place.
There is a potential conflict of interest issue here, it may not be every sale, there may not be commission but the issue remains.

hayleyjane82

I've just used new homes mortgage group to get my mortgage on a new build and I was very dubious. However I found them to be excellent, from mortgage application being done to offer receive in the post it was one calendar week. They were truly excellent and on the ball! :-)

TrickyDicky101

Wi88le wrote: »

I think you are being a bit naive here, you can prove you are a procedable buyer without using the sellers mortgage broker, there's enough posts of people being forced to see them if they want the house even if they already have finance in place.
There is a potential conflict of interest issue here, it may not be every sale, there may not be commission but the issue remains.

Nothing in bris's post to suggest OP should use New Homes as the broker - he's simply pointing out that if OP wants to buy the house then it would appear they need financial qualification from NH.