A recent newspaper article highlighted that some estate agents are trying to pressurise buyers into using their own in-house mortgage brokers. This could mean that buyers lose thousands of pounds paying for more expensive mortgages.
An estate agent works for the person selling their house, they are the customer as they pay the fees. However, this does not mean that they can poorly treat and bully purchasers into doing whatever they please. It is illegal for estate agents to tell buyers that a property purchase is conditional on them using the estate agents own mortgage broker. However, evidence suggest that this problem is widespread with agents all over the country using strong arm tactics to lure buyers in. Accordingly, the Property Ombudsman has seen an increase in complaints.
A buyer has the freedom to select their mortgage from whichever source they choose. This could be from their existing lender, direct from a new lender or by using an intermediary or mortgage broker. When selecting a broker it is important to choose either an independent mortgage broker or a whole of market mortgage broker as both of these have access to many thousands of different mortgage products from the market. A mortgage adviser working for an estate agent typically has access to a panel of lenders which could mean having only 10 lenders to choose from. This severely restricts the choice of mortgage products available and it is inevitable that many, many borrowers will be sold mortgages that are dearer than the best available in the market. This will cost thousands in higher monthly mortgage repayments.
As a purchaser it is prudent to search out and contact a whole of market mortgage broker at the beginning of your property search. Your broker will then be able to advise you how much you can borrow and the likely costs involved. You can then enter negotiations with knowledge and an expert on your side as your broker can also provide guidance on how to deal with a difficult estate agent. Many mortgage brokers are more than happy to deal direct with agents once a deal is struck meaning that you don’t have to, a saving of both time and hassle.
Enhanced Wealth is a whole of market mortgage broker who can provide a friendly and professional service for your mortgage needs. All of our mortgage advisers have a minimum of 10 years mortgage experience. Please call us on 0800 316 5756 to see how our mortgage service can help you.