Meeting EA Mortgage Adviser

1stBusiness

Hi all :wave:

Put an offer in on a house £10k below the asking price (rejected by the sellers). We then upped our offer by £5k, we're not prepared to pay the full asking price as the house needs a new kitchen/bathroom and full redecoration throughout! :eek:

The EA called us up today and said they have received two offers of £5k below the asking price, ours (first time buyers) and one from an investor.

They said they would prefer the sellers to go with us rather than the investor and would put our offer forward as the better choice, however they want us to meet with their mortgage/financial adviser to discuss our options. We already have a mortgage in principle and have met with the bank. They said we're under no pressure or obligation to take up their offers, but it seems like they will only put us forward on the condition of meeting their adviser :huh: It just seems a bit odd?

Obviously as first time buyers we don't have much knowledge of these things! We've agreed to meet them next week and try and find out what's actually going on. Are we worrying over nothing?

Surrey_EA

Explain to the EA, firmly but politely, that you have investigated your options and do not need to have a meeting with their in house adviser.

They cannot make meeting their adviser a condition of putting your offer forward.

Personally I would always use an independent, whole of the market broker to investigate all options, but you should make sure this this is someone you source yourself.

Gonzo1987

If you have your own financial advisor say you will get them to call the agent, or offer to forward your AIP to the agent. They're just making sure you can afford what you say you can afford - it's part of their duty to the vendor. Otherwise meet with their FA, you don't have to take on their services.

G_M

I agree with surrey but....

the reality is that the EA can easily put a slant on how they present the two offers to the vendor. (assuming there IS a 2nd offer). and you ight then lose out.

Why not see the adviser and keep te EA sweet.

Make sure you have a clear understanding of your current MIP, the interest rates, fixed period if any, fees, benefits etc

Then if/when the EA's adviser suggests an alternative you can say 'yes, but.....'

alternatively (or as well) you can say 'That's really helpful. Thank you. Put it in writing so we can look it over at home to consider'

For the sake of an hour of your time it might help get your offer accepted, and you don;t need to actually commit to anything.

(Be careful what you sign though!!!!)

G_M

Gonzo1987 wrote: »

......They're just making sure you can afford what you say you can afford - it's part of their duty to the vendor. Otherwise meet with their FA, you don't have to take on their services.

Perhaps.

Or perhaps they are more concerned about the extra commission they can earn.

Who knows?

:beer:

Gonzo1987

G_M wrote: »

Perhaps.

Or perhaps they are more concerned about the extra commission they can earn.

Who knows?

:beer:

Personally I never bother trying to sell mortgages, I'd much rather deal with someone's own FA who can just say 'yes go ahead' but I sometimes feel I'm a minority there.

eddddy

It's all a bit of a game and quite immoral, but I suspect...

If you indicate to the EA that you will use their mortgage advisor (and their solicitor), they will present you to the vendor as the preferred buyer - because they get lots of commission.

If you indicate that you won't use their mortgage advisor, it's less clear who the EA might recommend to the vendor.


Obviously, one approach is to indicate that you will use the mortgage advisor and solicitor, but then 'change your mind' after the offer is accepted...

dannim12345

I had the same. I already saw an independent adviser but they wanted me to meet with theirs. I did (it wasn't out of my way TBH), they suggested the same product (with Halifax) as I have a AIP for but they want £300 fee, my mortgage adviser wanted £100. So I politely declined.

ReadingTim

G_M wrote: »

Perhaps.

Or perhaps they are more concerned about the extra commission they can earn.

Who knows?

:beer:

It's different sides of the same coin! They are (potentially) doing the vendor a service by qualifying or assessing the proceedeability of that buyer, as nobody wants to be dealing with a time wasting fantascist who can't afford the offer they're making; but at the same time, their branch is going to make more commission from the sale - it's a mutually beneficial arrangement, shall we say...

Surrey_EA

G_M wrote: »

the reality is that the EA can easily put a slant on how they present the two offers to the vendor. (assuming there IS a 2nd offer). and you ight then lose out.

Why not see the adviser and keep te EA sweet.

Very good point.

Gonzo1987

ReadingTim wrote: »

It's different sides of the same coin! They are (potentially) doing the vendor a service by qualifying or assessing the proceedeability of that buyer, as nobody wants to be dealing with a time wasting fantascist who can't afford the offer they're making; but at the same time, their branch is going to make more commission from the sale - it's a mutually beneficial arrangement, shall we say...

about £50 if they used their mortgage services - hardly worth losing a sale over.