Estate Agent Requesting Financial Info

System

foxy-stoat wrote: »

The vendor has no right to ask you to do this - it is probably the estate agent trying to sell you a mortgage or trying to find out if you can increase your offer if you can afford it.

If you have a DIP or AIP then show them that - that should be sufficient along with proof of funds if its in a bank account.

I agree. You don't need to do it. And it is not in your interests.

hazyjo

Deleted_User wrote: »

Friend of mine just had a purchase collapse because the agents saw an AIP but didnt actually get confirmation that it was valid to buy the property my friends were selling.

What does an agent know about mortgage criteria? Nothing.

If someone shows an AIP for 5% deposit and a savings statement for 5% deposit then all good to go right?
.
What about if they are buying a flat? Does the agent know that the AIP with that particular lender wouldnt be approved?

I agree with everyone that the agents are trying to flog a mortgage appointment but its also to show you are proceedable as so many things go in to make a mortgage AIP turn in to a mortgage offer. 99% of mortgage brokers are honest and reputable people who (i hope) wouldnt trick you in to doing business with them.

Either go in and show what you have done so far. They will ask a few question around your circumstances to sanity check the numbers and approve your offer as proceedbale. Or ask to speak to the broker on the phone and see if he/she can speak directly to your broker.

At the end of the day, if you had the chance to check your buyers could proceed wouldnt you take it as a vendor? Just gives you that bit more confidence.

And obviously, you cant be sold to if you dont want to so they cant make you use their mortgage advisor.

Pretty much all my clients are asked to confirm their ability to proceed in some way. I dont have any issue with is. If its a small independent I usually call them and explain how the deal is made up, if it is a big agent with their own broker they usually try get them in to do it but my clients just give them my details and i do it for them

I've bought 8 or 9 and never had to sit down with a mortgage advisor. Would refuse. Would not want them running applications or searches in case it affected my credit rating for one thing, plus I just find it intrusive for an EA to insist.


Plus not every home I've offered on have I gone on to buy. The offer hasn't always been accepted and I have walked, or it's fallen through due to an incomplete chain. Usually I'd not start an application like that until the chain is complete.


"99% of mortgage brokers are honest" - do you have a source for that quote?

TBagpuss

Don't do it - it isn't in your interests and isn't necessary. It's useful to the agents as it gives them leverage to try to persuade you to pay more, if they can see you have higher borrowing, and/or to use it to try to get them to use their preferred adviser or conbveyancer.

If you are using a morgage broker, ask them todo a letter confirming that you have suficinet funds to cover your offer of £xxxx or alternatively ask your convyancer to do the same.

System

TBagpuss wrote: »

Don't do it - it isn't in your interests and isn't necessary. It's useful to the agents as it gives them leverage to try to persuade you to pay more, if they can see you have higher borrowing, and/or to use it to try to get them to use their preferred adviser or conbveyancer.

If you are using a morgage broker, ask them todo a letter confirming that you have suficinet funds to cover your offer of £xxxx or alternatively ask your convyancer to do the same.

I think the government should clamp down on estate agents being allowed to do it.

[Deleted User]

hazyjo wrote: »

I've bought 8 or 9 and never had to sit down with a mortgage advisor. Would refuse. Would not want them running applications or searches in case it affected my credit rating for one thing, plus I just find it intrusive for an EA to insist.


Plus not every home I've offered on have I gone on to buy. The offer hasn't always been accepted and I have walked, or it's fallen through due to an incomplete chain. Usually I'd not start an application like that until the chain is complete.

"99% of mortgage brokers are honest" - do you have a source for that quote?

No one said anything about running any applications or anything. Just checking the numbers and plans stack up.

I wouldnt have any issues with proving to an in house broker that i could buy a property even now with me working in the industry.
Maybe that's why though. I know how pointless an AIP is so can appreciate someone wanting to confirm you can actually proceed with an offer.

As a buyer I wouldn't generally do it until negotiations were done though as its a waste of my time. And I would ask my broker to speak to their broker to get it done.

Its a fine line for sure but I dont see a massive issue with the concept of proving someone can proceed with a purchase. Its how estate agents go about it sometimes that most have the real issue with.

Good point about the 99%, I may revise my figure down :-)

System

Deleted_User wrote: »

No one said anything about running any applications or anything. Just checking the numbers and plans stack up.

I wouldnt have any issues with proving to an in house broker that i could buy a property even now with me working in the industry.
Maybe that's why though. I know how pointless an AIP is so can appreciate someone wanting to confirm you can actually proceed with an offer.

As a buyer I wouldn't generally do it until negotiations were done though as its a waste of my time. And I would ask my broker to speak to their broker to get it done.

Its a fine line for sure but I dont see a massive issue with the concept of proving someone can proceed with a purchase. Its how estate agents go about it sometimes that most have the real issue with.

Good point about the 99%, I may revise my figure down :-)

If it was only offered after negotiations had been completed, that would be better. But if they discover you have access to more funds, I still wouldn't put it past some estate agents to try to get a buyer to pay more, even if a price had been agreed.

m0bov

Are you able to speak to the vendor? if so (or pop a note in the door) Tell the vendor you won't be speaking to the FA as you already have your mortgage in place. If they insist then you will not proceed.

£10 says the vendor knows nothing! EAs nearly always push mortgages as they get a good kick back, often more than the do from the sale.

hazyjo

Deleted_User wrote: »

No one said anything about running any applications or anything. Just checking the numbers and plans stack up.

I wouldnt have any issues with proving to an in house broker that i could buy a property even now with me working in the industry.
Maybe that's why though. I know how pointless an AIP is so can appreciate someone wanting to confirm you can actually proceed with an offer.

As a buyer I wouldn't generally do it until negotiations were done though as its a waste of my time. And I would ask my broker to speak to their broker to get it done.

Its a fine line for sure but I dont see a massive issue with the concept of proving someone can proceed with a purchase. Its how estate agents go about it sometimes that most have the real issue with.

Good point about the 99%, I may revise my figure down :-)

But that's just an AIP then isn't it? Unless they are going to run a full application, how on earth are they going to say they're any more able to buy the property they're offering on? Most people will offer, get a complete chain, then apply for a mortgage along with the other stuff.


So if you're saying you would wait until negotiations were done, what's the difference in applying for an actual mortgage against what you're suggesting? In both scenarios, they'll have an offer accepted, get a complete chain, then either (a) apply for mortgage or (b) have indepth checks to see if they're able to buy it. Or are you saying you'd do that before a complete chain? Isn't that pointless too? Rates, criteria, etc can change. Just cos you can buy it today doesn't mean you'd be able to buy it in two months' time.

System

m0bov wrote: »

Are you able to speak to the vendor? if so (or pop a note in the door) Tell the vendor you won't be speaking to the FA as you already have your mortgage in place. If they insist then you will not proceed.

£10 says the vendor knows nothing! EAs nearly always push mortgages as they get a good kick back, often more than the do from the sale.

Do you think it is more about the kickback than wanting to know a buyer's spending limits? I have previously come across agents asking for proof of funds as a cash buyer, before they will even allow a viewing.

eddddy

The Property Ombudsman tells estate agents that they must do the following:

10a At the time that an offer has been made and is being considered by the seller, you must take reasonable steps to find out from the buyer the source and availability of their funds for buying the property and pass this information to the seller. Such information will include whether the buyer needs to sell a property, requires a mortgage, claims to be a cash buyer (*) or any combination of these.

Link: https://www.tpos.co.uk/images/Codes_2019_a5/TPOE27-8_Code_of_Practice_for_Residential_Estate_Agents_A5_-_Effective_1_June_2019.pdf

So asking to see an AIP and proof of deposit is probably one reasonable way of doing this.

But as others suggest, some EAs use this as an opening to sell mortgages.

But if you refuse to provide this info:

10b You must put all offers to your seller client even if the buyer has not been financially qualified at that stage.

As a buyer, I think I would say that I would provide the AIP and proof of deposit once the amount of the offer has been accepted.