EA refusing to show us properties based on AIP

steampowered

This has absolutely nothing to do with filtering buyers.

The estate agent is pushing you towards their linked mortgage advisers because the mortgage adviser pays commission for each referral. 

It's very annoying and probably a breach of the agent's professional code of conduct, and a breach of contract with the EA's clients. But you might as well go along with it. Whatever you do - don't use the EA's mortgage adviser to get a mortgage.

You might as well just get an AIP from a bank if it ticks the box. While a AIP from L&C has very little value, a AIP from a bank is no better. For example, the banks don't do any income verification before issuing a AIP.

SallyDucati

I sort of had the same issue, I could view the house but when I gave the L&C AIP they said it wasn't worth anything.  I did go to their broker just to see what they came up with, and he found me a better deal so actually did me a favour!

AdrianC

steampowered said:

Whatever you do - don't use the EA's mortgage adviser to get a mortgage.

Why not?

The worst that can happen is you waste half an hour.
The best is you get a better mortgage offer.

Seeing the advisor does not mean you HAVE to use their suggested product.

It's nothing like using the developer's recommended solicitor, where they should be the only person acting on your behalf through the sale but have a fundamental conflict of interest...

bob_the_dinosaur

Could be an issue with L and C (not unheard of), or a ploy to get you in with their mortgage guy.
Get a soft search from elsewhere, if the agent still kicks up a fuss then you know for certain that they are playing games.  Could be that they want to see how much you can afford to get you to pay more for the desired house.  

AdrianC

bob_the_dinosaur said:

Could be that they want to see how much you can afford to get you to pay more for the desired house.  

Whether somebody "can afford" to pay a certain figure doesn't mean they're going to pay that figure. They may well choose to buy within their limit, they may well decide a certain property has a ceiling value they're willing to pay.

bob_the_dinosaur

AdrianC said:

steampowered said:

Whatever you do - don't use the EA's mortgage adviser to get a mortgage.

Why not?

The worst that can happen is you waste half an hour.
The best is you get a better mortgage offer.

Seeing the advisor does not mean you HAVE to use their suggested product.

It's nothing like using the developer's recommended solicitor, where they should be the only person acting on your behalf through the sale but have a fundamental conflict of interest...

Slight issue with this.
Say for example the house you want to buy is £200k, you can afford to borrow so that your budget is up to £250k, but you are choosing not to.  Your AIP from elsewhere is based on a £200k purchase price.  If their in house advisor knows you would be accepted up to £250k then the agent knows you are not at the top of your budget and can push you to pay more.  They want the referral to the broker and the extra money for the seller.  

AdrianC

bob_the_dinosaur said:

AdrianC said:

steampowered said:

Whatever you do - don't use the EA's mortgage adviser to get a mortgage.

Why not?

The worst that can happen is you waste half an hour.
The best is you get a better mortgage offer.

Seeing the advisor does not mean you HAVE to use their suggested product.

It's nothing like using the developer's recommended solicitor, where they should be the only person acting on your behalf through the sale but have a fundamental conflict of interest...

Slight issue with this.
Say for example the house you want to buy is £200k, you can afford to borrow so that your budget is up to £250k, but you are choosing not to.  Your AIP from elsewhere is based on a £200k purchase price.  If their in house advisor knows you would be accepted up to £250k then the agent knows you are not at the top of your budget and can push you to pay more.  They want the referral to the broker and the extra money for the seller.  

No, no issue at all unless you're lying to them and saying "But I can't possibly pay more"...

They can push all they like. You just say "Nope, not going to pay more than that for this place."... and be prepared to walk away.

If I walk into Sainsbury with a tenner in my pocket wanting lunch, nobody has an issue if I pay £3 for a meal deal sandwich, do they? So why is there some kind of expectation that you absolutely MUST spend every last penny you can possibly raise on buying a property?

steampowered

AdrianC said:

steampowered said:

Whatever you do - don't use the EA's mortgage adviser to get a mortgage.

Why not?

What I was trying to say is that the Op should speak to the EA's mortgage adviser (if the Op doesn't mind wasting their time), but not take out a product with them.

Last time I looked for houses in London and viewed a number of properties most of the EAs all wanted to try and sell me their mortgage adviser, even after I had decided not to offer on the property involved.  It was a giant waste of time.

With L&C (or indeed just with an online calculator) the Op is already getting the best rates. Using the EA's mortgage adviser won't help, and service levels tend to be rock bottom - after all, they need to cover the fat commission getting paid back to the EA.

I agree it's not as bad as using a developer's solicitor, but there have been a number of posts on here where people have got really bad service from an EA's mortgage adviser, as well as examples of the mortgage adviser passing confidential information back to the EA without their consent.

bob_the_dinosaur

AdrianC said:

bob_the_dinosaur said:

AdrianC said:

steampowered said:

Whatever you do - don't use the EA's mortgage adviser to get a mortgage.

Why not?

The worst that can happen is you waste half an hour.
The best is you get a better mortgage offer.

Seeing the advisor does not mean you HAVE to use their suggested product.

It's nothing like using the developer's recommended solicitor, where they should be the only person acting on your behalf through the sale but have a fundamental conflict of interest...

Slight issue with this.
Say for example the house you want to buy is £200k, you can afford to borrow so that your budget is up to £250k, but you are choosing not to.  Your AIP from elsewhere is based on a £200k purchase price.  If their in house advisor knows you would be accepted up to £250k then the agent knows you are not at the top of your budget and can push you to pay more.  They want the referral to the broker and the extra money for the seller.  

No, no issue at all unless you're lying to them and saying "But I can't possibly pay more"...

They can push all they like. You just say "Nope, not going to pay more than that for this place."... and be prepared to walk away.

If I walk into Sainsbury with a tenner in my pocket wanting lunch, nobody has an issue if I pay £3 for a meal deal sandwich, do they? So why is there some kind of expectation that you absolutely MUST spend every last penny you can possibly raise on buying a property?

Difference is in Sainsburys the meal deal is a fixed price and there are no negotiations, if you see a BLT you want for your lunch then you don't go up to the till and offer £2.85 for it, nor does anyone try and get you to pay £3.10 because the sandwich factory want more.
With an EA you don't need to lie if their broker isn't involved, they ask for best and finals and you give them yours.  
The conversation when they know what you can afford is totally different as they have more knowledge and more power.

nnewtoarea

Why don't you get an online AIP from your a Bank you have account with.