Do I Have to use my Estate Agents in-house Mortgage Advisor?

When you are buying a home you do not need to go with the estate agency advisor. The agent may intimate that you may lose the property if you go with someone else but that is not the case. 

Obviously, the estate agents earn extra commission from you when you use their additional services. People do not like being “sold” to so here are some of the tactics to look out for: 

• A buyers financial incentive if you use both in-house mortgage and conveyancing services. If it sounds too good to be true it will be! Please always think to yourself, where is this money coming from?
  

• The estate agent saying they are not putting your offer forward to the vendor if you have not taken in-house mortgage advice. This is an illegal practice. 
  

• Quoting extortionate solcitor’s fees – being quoted extortionate £1,500+ for a straight forward purchase.

There are several other ways you can arrange a mortgage without using the Estate Agent. 

In this article, we will try to help first time buyers decide on who to use for their mortgage and also how to make sure you are receiving value for your money!

Do it Yourself Online 

Some people are confident using price comparison websites to get an idea of the rates available. Remember it’s important to take advice at some point in the process, buying a house is obviously a very big deal and it’s important you get it right. 

Here are some things to look out for if you want to have a go at applying online: 

• The rates advertised are ‘Best Buy’ rates – you might not qualify for this rate. Also, you might not meet that Lender’s specific lending criteria.
  
• Some websites only display deals where they have a commercial arrangement with those lenders. Deals from other Lenders not visible may be more suitable for you. 
  
• It can be expensive if you get this wrong. Check what fees are payable and when. If your application is declined can you get your money back. Sometimes deals at the top of the list come with massive set up fees. 
  
• You will solely be responsible for progressing your application. If you apply without taking advice you will not benefit from any consumer protection such as FOS. 

Go to your own Bank 

You could arrange a mortgage directly with your Bank. Lots of people used to do this but not so much anymore. People’s trust in the advice they receive from Banks is much less than it used to be. Look out for: 

• Banks can only offer you their own products. They are not obliged to tell you if there are cheaper deals available elsewhere. 
• Computer says no! – If your application is declined Banks can be reluctant to tell you why. Also, some lenders’ credit scores can be difficult to pass. 
• Appointments can be hard to arrange as can out-of-hours appointments. 

Find your own mortgage broker 

Some homebuyers are reluctant to hand over their financial details to an estate agent. They are worried that the vendor might find out what a strong financial position they are in and end up paying too much for the property. 

Some estate agents may initiate that their vendor would prefer you to arrange our mortgage in-house. This won’t be true – all the Vendor cares about is that you are in a financial position to proceed. 

Go and see a mortgage broker not connected to the estate agent and ask for an agreement in princple. You can then provide this document to the estate agent to prove you are in a “proceedable” position. You will also be asked to evidence your deposit and ID. 

Whether you looking for first time buyer, moving home or remortgage advice a good mortgage broker will guide you through the full process of buying a home and give you open and honest advice. Take up our offer for a free mortgage consultation and find an advisor you like and trust.