Mortgage Broker...spouse visa, estate agents

Abigail1990

Hi all

I have come for advice. I am a British citizen and my husband is on a spouse visa, due to this I approached an all of market broker who got me an agreement in principle before i even found a property as i didnt want to waste my time looking if it was unlikely we were going to be accepted for a mortgage.

We went to view a property today which we fell in love with but before the agents would show us they insisted we booked in with their in house mortgage advisor who said he works in the estate agents building but is independent. I know we can't name brokers but the company he works for owns this certain estate agent but he said regardless of whether we buy a house through this certain estate agent he can do the whole process for us (mortgage, solicitors, etc).

The reason i am dubious is because after reading this and other forums i have heard negative reviews about estate agent based brokers, especially where spouse visa applicants are involved. The estate agent broker said that we would be at an advantage to go with him in the eyes of the seller and the fact he will sort solicitors etc is also a positive for us. Will we be at an advantage going with him and presumably if we decided to go with our own independent broker (which for some reason is my instinct) could the agents be less likely to put our offer forward on the property etc? Estate agent broker seemed to think spouse visa is not a problem at all and is easy to place on the high st. He also said he could get my mom who is 63 and on disability benefits a mortgage to buy her council house under right to buy, on a side note is this likely? (Sorry if i have derailed the post with this question, ignore it if i should have done a separate thread.)

What are your views regarding the brokers? Should i stick with the independent broker or change to the estate agent based one, especially given the fact one of us is on a spouse visa?

Thank you in advance for your invaluable advice

ACG

The broker is saying things he is not allowed to say. We (brokers) nor estate agents are allowed to make false statements and saying you will have a better chance if you use them and their (no doubt expensive) solicitors should not be a factor in whether or not your offer is accepted.

There are a couple of lenders where the visa will not be a deal breaker so any experienced broker should be able to overcome it, but to be honest the the fact that he is coming out with statements to convince you to use him throws any credibility he has out of the window. This sort of things needs stamping out as he is effectively abusing his position to try and get you to go with him - grrrr very frustrating. We lose customers who want to stick with us due to these sales tactics.

As for the RTB purchase, it is feasible you can use benefit only income to purchase a house, but at 63, why would your mum want to take on a mortgage and lose the benefit of tenancy agreement she has? She will become liable for any expenses (boiler breaks, leaks, damage to the tiles - these are all costs your mum will need to pay for).

MovingForwards

Stick with your own, independent, broker. As him/her to give the estate agent a call to confirm you are good for the offer made and are proceedable.

Re: mom - depends on her benefits, how much she has per year and debts/credit history eg defaults/late payments and the amount she would need to borrow; does she really want to be paying a mortgage and all repairs when she has a secure tenancy? If so, find a specialist right to buy broker and avoid the estate agents in-house broker.

The estate agent will get a financial kick back if you go with their broker and solicitor.

Keely it all separate then you will never have any doubts the person is acting in your best interest!

Catkei

I, on principle, stayed away from estate agents that were overly pushy on using their own brokers/solicitors/mortgage advisor. The EA have a financial vested interest in sending buyers to their "guys". I don't understand why you think they sorting out a solicitor is better for you? It's not that much hassle to get some quotes or recommendations and choose one yourself?

MortgageMamma

I agree with everyone else but just wanted to say about your Mum. At her age its not a good idea to buy. I did a RTB purchase this week for a lady who is 56 and needed a 16 year term and I was uncomfortable so encouraged her to keep the term under 70. The only reason I did it for her was because she's a pension client also and I know she is in good health and can cope with the repayments and has a good pension pot. She's not on benefits.

The problem is for clients on benefits is that although they are fairly steady now just the slightest change in legislation could be disaster for them (and has been for many on ESA and PIP since the government decided to cull benefits for people perfectly well entitled to them). If the boiler went where would the money come from? what about a new roof if needed or new windows? For the rent paid to the council, I think council tenancies are good value for money.

That said, if a younger family member who works and lives in the house wanted to go on the mortgage with her, so she wasn't facing such risks if there were changes to her income then that could be a way around it. I think this can be done but I've never come a case like that personally.

As always take professional advice. And trust your instincts about which mortgage adviser you use. Estate agents are know for such bad practice which hopefully soon will be stamped out.

Abigail1990

Thank you all for you replies. Regarding my mom, yes I think you're all right, it's a secure tenancy and I would not want her under any financial strain. I don't even know how the topic came up with the broker, it just shocked me when he said it was possible.

So just to clarify, if I go with the independent broker I found I can't be penalised in any way by the agents? I really like this house. The estate agent broker was with countrywide mortgage consultants who also own the estate agents (I dont think there's a problem with me mentioning them?)

Thank you

haras_nosirrah

I know countrywide very well - ex employee here

They won't penalise you for not using them
They are tied to a restrictive panel and will not have as many options as your independent
Their solicitors are expensive and bloomin awful
Their insurances are twice the price of everywhere else.

The advisors are as good or bad as the individual advisor but I would go with the independent

ACG

Abigail1990 wrote: »

So just to clarify, if I go with the independent broker I found I can't (replace can't with should'nt) be penalised in any way by the agents? I really like this house. The estate agent broker was with countrywide mortgage consultants who also own the estate agents (I dont think there's a problem with me mentioning them?)

Thank you

Unfortunately until enough people complain about these practices, estate agents and their brokers will get away with making customers who use their services sound better those who do not.

Abigail1990

Thank you both.

I will stick with the independent and see how it goes. The estate agent broker did allude to his clients being seen more favourably to others, even if they make lower offers so might be a risk we have to take.