Estate agents won't send offer through until I have spoken with their mortgage advisor

orangecrush

princeofpounds said:

HOWEVER.... (caps for drama)...

You appear to have one important problem. Most agents will not accept an AIP from a broker. There is actually a good reason for this - a broker is not a lender, and they will not do a credit check on you. You aren't really proceedable if that's all you can show. So you need to go through the process with a selected lender first.

This is interesting!  I have an AIP from a broker, but it is with a lender.  So the AIP is from Nationwide, but completed by the broker as an intermediary.  So does that mean it's worthless?  And we will have to get another AIP from Nationwide directly?

MovingForwards

orangecrush said:

princeofpounds said:

HOWEVER.... (caps for drama)...

You appear to have one important problem. Most agents will not accept an AIP from a broker. There is actually a good reason for this - a broker is not a lender, and they will not do a credit check on you. You aren't really proceedable if that's all you can show. So you need to go through the process with a selected lender first.

This is interesting!  I have an AIP from a broker, but it is with a lender.  So the AIP is from Nationwide, but completed by the broker as an intermediary.  So does that mean it's worthless?  And we will have to get another AIP from Nationwide directly?

No it doesn't, it's from the bank, but input by the broker.
Some conveyor belt brokers do a DIP based on affordability but not actually checking if any lender would approve it / the client based on a soft / hard search. These are the DIPs which get rejected by EAs.

[Deleted User]

Ive just had an offer accepted on a BTL 
Fantastic bargain at £420k when houses round here sell for £500k plus
vacant house- sellers wants a quick sale. 

I took my Building society savings book (£111,000) an AIP from Santander and my pension slip.
They had had an offer at asking price ( £440)  but buyer not proceedable as not sold. Agent knew from my Docs, I had 25% deposit, AIP and was on very high pension so not self employed or furloughed etc.
They snapped my hand off- they want the commission 

csgohan4

tom9980 said:

AdrianC said:

tom9980 said:

As a seller I want a buyer vetted.
I want to know they have a good deposit, ideally 15%+ and fees etc.
I want to know if they were furloughed and what line of work they are in.
I want to know if they are using a mortgage broker or applying direct and to which lender.

As a seller, none of that is your business. The only question that matters is "Can they afford it?"

The EA should be mollified simply by proof of affordability. Anything more than that is them wishing to sell their own mortgage services. But... Would spending half an hour be a bad thing, if it results in an EA more willing to pass on your offer...? And it might even result in a better mortgage offer...

I have already been messed around by one buyer pulling out at the last moment after 2 months for frankly ridiculous reasons relating to the survey. I wont be wasting time on offers that are not likely to succeed getting a mortgage and wasting more time when I would like the whole process done and dusted by the autumn budget statement.

So far two viewers who made offers have been rejected because they would not get a mortgage in the current climate. The simple fact is not being on furlough during covid, having a deposit bigger than 15% and using a broker are all important factors that increase the chances of completing the sale. Those are my terms, their individual situation will affect me if they waste my time so if you don't like it you wont be buying a well priced property that is in good order.

Most money savers on here won't use EA brokers and for very good reason, they are not always whole of the market and in fact some provide poor value for money and service which actually prolong sales such as in house solicitors e.t.c. .

I got quoted for a full building survey of over 1k, got it done elsewhere for half the price as a prime example.

While you have your reasonable reasons, as a buyer I am not going to take a bad deal just to be able to offer on your house thank you. At this time it would be a buyers market as your pool of buyers have shrunk considerably.

By all means confirm they can afford it, but to make it mandatory to use an EA service could be a bad move. 

tom9980

csgohan4 said:

tom9980 said:

AdrianC said:

tom9980 said:

As a seller I want a buyer vetted.
I want to know they have a good deposit, ideally 15%+ and fees etc.
I want to know if they were furloughed and what line of work they are in.
I want to know if they are using a mortgage broker or applying direct and to which lender.

As a seller, none of that is your business. The only question that matters is "Can they afford it?"

The EA should be mollified simply by proof of affordability. Anything more than that is them wishing to sell their own mortgage services. But... Would spending half an hour be a bad thing, if it results in an EA more willing to pass on your offer...? And it might even result in a better mortgage offer...

I have already been messed around by one buyer pulling out at the last moment after 2 months for frankly ridiculous reasons relating to the survey. I wont be wasting time on offers that are not likely to succeed getting a mortgage and wasting more time when I would like the whole process done and dusted by the autumn budget statement.

So far two viewers who made offers have been rejected because they would not get a mortgage in the current climate. The simple fact is not being on furlough during covid, having a deposit bigger than 15% and using a broker are all important factors that increase the chances of completing the sale. Those are my terms, their individual situation will affect me if they waste my time so if you don't like it you wont be buying a well priced property that is in good order.

Most money savers on here won't use EA brokers and for very good reason, they are not always whole of the market and in fact some provide poor value for money and service which actually prolong sales such as in house solicitors e.t.c. .

I got quoted for a full building survey of over 1k, got it done elsewhere for half the price as a prime example.

While you have your reasonable reasons, as a buyer I am not going to take a bad deal just to be able to offer on your house thank you. At this time it would be a buyers market as your pool of buyers have shrunk considerably.

By all means confirm they can afford it, but to make it mandatory to use an EA service could be a bad move. 

I said broker not the EA broker.

AdrianC

csgohan4 said:
Most money savers on here won't use EA brokers and for very good reason, they are not always whole of the market and in fact some provide poor value for money and service which actually prolong sales such as in house solicitors e.t.c.

I got quoted for a full building survey of over 1k, got it done elsewhere for half the price as a prime example.

While you have your reasonable reasons, as a buyer I am not going to take a bad deal just to be able to offer on your house thank you. At this time it would be a buyers market as your pool of buyers have shrunk considerably.

By all means confirm they can afford it, but to make it mandatory to use an EA service could be a bad move. 

There's a difference between seeing an EA broker to confirm affordability and find out what they can offer... and taking their product.

steampowered

princeofpounds said:

You appear to have one important problem. Most agents will not accept an AIP from a broker. There is actually a good reason for this - a broker is not a lender, and they will not do a credit check on you. You aren't really proceedable if that's all you can show. So you need to go through the process with a selected lender first.

But many lenders don't do credit checks before issuing AIPs either. 

The estate agent's broker wouldn't do a credit check either.

It's all a pointless charade for the agent to get a bit of commission. 

Hannimal

tom9980 said:
I have already been messed around by one buyer pulling out at the last moment after 2 months for frankly ridiculous reasons relating to the survey. I wont be wasting time on offers that are not likely to succeed getting a mortgage and wasting more time when I would like the whole process done and dusted by the autumn budget statement.
So far two viewers who made offers have been rejected because they would not get a mortgage in the current climate. The simple fact is not being on furlough during covid, having a deposit bigger than 15% and using a broker are all important factors that increase the chances of completing the sale. Those are my terms, their individual situation will affect me if they waste my time so if you don't like it you wont be buying a well priced property that is in good order.

And even then Tom, you can accept an offer subject to them providing with this info. Your EA does not need to bully someone into talking with their broker just to get an offer. Lots of EAs do not do this and when I was looking, I was really put off by any of these unnecessary steps. Not enough to not put an offer in - I didn't for other reasons - but enough to really carefully consider whether viewing listings by EAs that make the process unnecessarily difficult is worth my while. 

I also really feel for people who've been furloughed, most of them are now back at work and are not at risk of losing their jobs. To call them timewasters because they've had uncertainty is a bit harsh, don't you think. Sure, only accept offers from who you're comfortable can afford to actually buy, but speaking about people in that way isn't strictly helpful.

tom9980

Hannimal said:

tom9980 said:
I have already been messed around by one buyer pulling out at the last moment after 2 months for frankly ridiculous reasons relating to the survey. I wont be wasting time on offers that are not likely to succeed getting a mortgage and wasting more time when I would like the whole process done and dusted by the autumn budget statement.
So far two viewers who made offers have been rejected because they would not get a mortgage in the current climate. The simple fact is not being on furlough during covid, having a deposit bigger than 15% and using a broker are all important factors that increase the chances of completing the sale. Those are my terms, their individual situation will affect me if they waste my time so if you don't like it you wont be buying a well priced property that is in good order.

And even then Tom, you can accept an offer subject to them providing with this info. Your EA does not need to bully someone into talking with their broker just to get an offer. Lots of EAs do not do this and when I was looking, I was really put off by any of these unnecessary steps. Not enough to not put an offer in - I didn't for other reasons - but enough to really carefully consider whether viewing listings by EAs that make the process unnecessarily difficult is worth my while. 

I also really feel for people who've been furloughed, most of them are now back at work and are not at risk of losing their jobs. To call them timewasters because they've had uncertainty is a bit harsh, don't you think. Sure, only accept offers from who you're comfortable can afford to actually buy, but speaking about people in that way isn't strictly helpful.

I did not say they were timewasters, it is a fact that furlough, bounce back loans and SEISS are a problem for some lenders at the moment hence me asking the buyer to supply information which will inform my decision on accepting an offer. I could have a dozen offers and I may well accept the offer that is lower because the buyer situation is more likely to get through the mortgage process, I don't want to find out in 3-4 weeks time that the buyer has to switch lender or that I will have to re-market my property.

orangecrush

MovingForwards said:

orangecrush said:

This is interesting!  I have an AIP from a broker, but it is with a lender.  So the AIP is from Nationwide, but completed by the broker as an intermediary.  So does that mean it's worthless?  And we will have to get another AIP from Nationwide directly?

No it doesn't, it's from the bank, but input by the broker.
Some conveyor belt brokers do a DIP based on affordability but not actually checking if any lender would approve it / the client based on a soft / hard search. These are the DIPs which get rejected by EAs.

Thanks so much, that's reassuring!  We're going to see potentially a house of dreams on Friday and I panicked our DIP was rubbish