Mortgage promise? FTB

jessy-eve

Hi,

Me and my partner are currently house hunting to buy our first house. We have an agreement in principle from Lloyd's which we are using a guide as to our maximum budget. Today my partner received a phonecall from a mortgage advisor telling us we have to come in and get a mortgage promise to be able to put offers in if we find a property we want. Is this the case? We haven't been told anything up until this point that this is something we need? Thanks

Bluebirdman_of_Alcathays

What on earth is a mortgage promise?!

AnotherJoe

Tell him you've already got an AIP and dont wish to deal with their mortgage broker, but here's the number of your adviser, they can call them if they'd like to check.
If they refuse to pass on an offer, put a note through the letterbox of the house you'd like to make an offer on, stating that you have an offer in principle from your mortgage company, but the estate agency are refusing to pass your offer on to them unless you take out a mortgage through their EAs mortgage broker*.
If I was the seller I'd be incensed.

* they might attempt to weasel out and say they are validating your affordability but the fact you have an AIP makes that a lie. Basically they are trying it on and attempting to scare / brow beat you into using them, since they will get a whacking big commission, which you will pay for in some way with worse mortgage terms.

AlexMac

You don't say how this mortgage advisor got your contact, as presumably you are confident enough and happy to deal direct with lenders (as I have done on every one of my dozen or more house purchasers over the years)?

So I guess this random advisor is touting for business and has a link to one of the agents you've registered with? Or maybe you have expressed interest in a house via such an agent who has a tame advisor symbiotically co-existing with them?

The agent's obliged to forward offers to the vendor irrespective of any BS about "promises". On the other hand, I have, on occasions, let the agent vet my readiness to proceed - a sort of financial health-check - to show goodwill and to encourage their co-operation in a sellers' market.

The EA may even imply they won't forward offers from time-wasters, but there's no such rule, and as I say, they are obliged to forward offers.

Round here, homes sell fast, so it pays not to p155 'em off no matter what you think of EAs. In each such case where I've played ball, it's been the mortgage advisor doing the scrutiny, and they obviously only get paid if they get punters. But I've never let an advisor sell me a loan, or insurance, or other services I didn't want... But I fend them off politely.

So be polite but persistent... Maybe more important to have a solicitor ready to act on your behalf, and to emphasise any other plus points so the EA knows you're ready to go

G_M

This is an 'adviser' attached to one of the estate agencies you hve registered with. They are trying to drum you up as a mortgage customer in order to get the commission.

They cannot insist you do this, however they do have a duty to ensure you can afford theproperties you make offers on.

See the Property Ombudsman rules:

Associated Services

You are not required to use any associated service which is offered by the agent. You are entitled to use your own financial adviser, legal representative and surveyor. Refusal of additional services should not prejudice any offers or viewings made through the agent.
If the buyer accepts services offered though the agent, the agent must inform the seller in writing of those services.

Financial Checks

An agent will ask sellers to provide proof of identity, as required by the Money Laundering Regulations 2007. Buyers will be asked for similar information, along with details of their funding for the proposed purchase at the point an offer is made.

marksoton

jessy-eve wrote: »

Hi,

Me and my partner are currently house hunting to buy our first house. We have an agreement in principle from Lloyd's which we are using a guide as to our maximum budget. Today my partner received a phonecall from a mortgage advisor telling us we have to come in and get a mortgage promise to be able to put offers in if we find a property we want. Is this the case? We haven't been told anything up until this point that this is something we need? Thanks

You what???