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Pauly_Boy

How Much Info Do You Give To An Ea Or Mortgage Advisor

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So, I popped into an estate agents today to have a chat as they always seem to get there hands on distressed property. Anyway, he said that most companies selling distressed properties/repo's often want the mortgage in principle and solicitors details at the time of offer as they only want genuine buyers.

Now, I'm pretty good with money, so sorting out a mortgage myself is no problems, but he offered me an appointment with there in house mortgage adviser, who may be able to get better rates. Is it a good idea to see this chap, considering the EAs work for the seller and will then know pretty much everything about my finances so can push my offer up? At the same time, it would make me a prefered buyer as they'll be missing out on commission if I don't buy.

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I'm a whole of market broker, whatever you do do not talk to the estate agent brokers.

If you want to get advice you will have to give information.

If you can arrange the finance yourself then dont talk to the broker.

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....IMO there is a conflict of interest with EAs having 'in-house' mortgage advisers ...and for them to suggest at any time there might be a disadvantage to the potential buyer through not using them amounts to corruption ....we have Government offices of Fair Trading etc....etc ....why do they not sort out this type of practice....?... <_<

Edited by South Lorne

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When we were actively looking to buy a property, we spoke 3 times to brokers attached to EA's. It was over a long period of time, so maybe one a year.

In our experience they could not offer any better deals than our normal bank could. One broker wasted our time particualrly badly. We made an appointment to see him, took along all our financial information and he didn't even bother coming back with some quotes. I phoned him, left messages and in the end spoke to his manager (really niave of me) and they did eventually come up with some offers but nothing worthwhile. Never again.

The only advantage I can see is that the EA may treat you more favourably if they "think" you will go with one of their brokers (and make them some more money through introductions fees etc).

How low they would stoop in principal I don't know. The "preferred buyer" bit. Some EA's are advertising the highest amount offered for repos and then a date that people must contact them by to try and ensure that the process is tranparent and the bank/debtor cannot come back on them.

My experience of looking at repos is that the agents we have dealt with so far, have been so desperate to get a sale that they didn't even try to fob us off on a broker. Yes, in the previous cases the agent did try to use to mortgage amounts offered as a way of pushing up our offers (it didn't work).

Edited by Flopsy

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EA brokers have a bad rep, there was a story on the Beeb recently about how some EA's won't help you unless they use their broker etc. I don't see why a genuine independent (of any bank) broker working with an EA would be any more biased or less than any other broker though. You can lay the same charge of bias to a non EA broker too if you really wanted to be cynical?

IFAs & brokers make their money from commissions (always?) so I guess there is always some incentive to push one product or another whether the broker is attached to an EA or not. That said, I was very happy with my unattached IFA and was happy he didn't push me in for a product that wasn't suitable. Heck once you get the info you are still free to do your own research too :). But if you don't like the broker, find another one, there are plenty of very helpful and reputable people out there!

Edited by Orbital

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So, I popped into an estate agents today to have a chat as they always seem to get there hands on distressed property. Anyway, he said that most companies selling distressed properties/repo's often want the mortgage in principle and solicitors details at the time of offer as they only want genuine buyers.

Now, I'm pretty good with money, so sorting out a mortgage myself is no problems, but he offered me an appointment with there in house mortgage adviser, who may be able to get better rates. Is it a good idea to see this chap, considering the EAs work for the seller and will then know pretty much everything about my finances so can push my offer up? At the same time, it would make me a prefered buyer as they'll be missing out on commission if I don't buy.

They do this simply so they can find out how much you can afford, and use this infomation in negotiations, knowing how far they can push you

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I'm a whole of market broker, whatever you do do not talk to the estate agent brokers.

If you want to get advice you will have to give information.

If you can arrange the finance yourself then dont talk to the broker.

Completely agree with this.

Thankfully I work for a nice grown up firm who have no interest in selling services to our clients that they do not want.

However, i would not consider it unreasonable for the EA to request proof of funding from a buyer. I understand most people will not want their personal financial details to be known to all and sundry so the solicitor confirming that they have seen evidence of funding arranged will normally suffice.

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Thanks people

so basically I should avoid it as they have no better offers and will only use the info I provide against me. TBH, I can probably find the best deals online anyway.

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I'm a whole of market broker, whatever you do do not talk to the estate agent brokers.

An EA told me earlier this year, that unless I spoke to their inhouse mortgage broker, they would not pass on any offer to the vendor. As it happens, I didn't want to make an offer anyway.

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Thanks people

so basically I should avoid it as they have no better offers and will only use the info I provide against me. TBH, I can probably find the best deals online anyway.

I would still contact a broker just not the EA, tell them the deal you found and can they beat it. You will also get free advice.

An EA told me earlier this year, that unless I spoke to their inhouse mortgage broker, they would not pass on any offer to the vendor. As it happens, I didn't want to make an offer anyway.

Thats Bull$hit we tell all our clients to tell the EA that they have an AIP (aggrement in principal) as soon as the EA know that you have a broker they will back off. EA need to sell houses and in this market they would be crazy not to put the offer forward.

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Use the broker at another EA. They're rarely tied to the EA whose offices they use--the market is just too competitive.

10 years ago, I played 3 of them off against each other and got a good deal, but not as good as the one I eventually negotiatied myself with a leading lender.

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