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Just put an offer in on a house and the EA said I need to get a mortgage agreement in principle and come in and show it to their Indenpendant Financial Adviser first. I'm sure I didn't fo that last time a bought a house 10 years ago. Is this normal practise nowadays?

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Just put an offer in on a house and the EA said I need to get a mortgage agreement in principle and come in and show it to their Indenpendant Financial Adviser first. I'm sure I didn't fo that last time a bought a house 10 years ago. Is this normal practise nowadays?

Probably just the EA trying to get your mortgage business. I'd tell them to go to hell.

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I understand it is un-official standard practice these days. They're trying to avoid timewasters who then spend a few weeks trying to get a mortgage but fail.

Shouldn't have to show it to their IFA though.

Edited by MC Fur Q

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I understand it is un-official standard practice these days. They're trying to avoid timewasters who then spend a few weeks trying to get a mortgage but fail.

Shouldn't have to show it to their IFA though.

I think it's essential that you have proof that you can proceed, and don't blame the EA asking for it.

However, having to show it to the IFA sounds like they're trying to poach the business.

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I understand it is un-official standard practice these days. They're trying to avoid timewasters who then spend a few weeks trying to get a mortgage but fail.

But why would you have to see their IFA rather than just give proof of funds to the branch manager?

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Just put an offer in on a house and the EA said I need to get a mortgage agreement in principle and come in and show it to their Indenpendant Financial Adviser first. I'm sure I didn't fo that last time a bought a house 10 years ago. Is this normal practise nowadays?

You can get an agreement in principle by making up any old figures and putting it into an online mortgage application e.g. HSBC.

When I questioned this procedure with HSBC, they said they couldn't give a written approval until you had paid the application fee and they would then do a full income/status verification check. However, you couldn't make an application for a mortgage without the address so there was no point doing this until you knew the offer had been accepted.

Catch 22.

So the EA is following a procedure that makes no sense with the current meaning of "a mortgage in principle".

P.S. There should be no reason for you to show the agreement to the IFA, that is just a sales pitch. Showing it to the EA should be enough.

Edited by VeryMeanReversion

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Its a standard practice to find out how much you earn. The EA is working for the seller, if they know what your budget could be, they can create fake buyers who put in higher offers to try and get you to raise your offer and there commission.

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Its a standard practice to find out how much you earn. The EA is working for the seller, if they know what your budget could be, they can create fake buyers who put in higher offers to try and get you to raise your offer and there commission.

I'd give them sight of considerably more funds than would be necessary to back up my offer and tell them in no uncertain terms that I could afford considerably more than the offered amount but consider that to be what the house is worth, no negotiation, take it or leave it.

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If you put an offer in it's the law that the EA has to pass this on to the vendor so there is not really any point in getting the agreement?

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Never ever show anything to the 'Independent' advisor as an EA - once they have your financial numbers they know how much you can really afford, and will encourage the seller to ask for more

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No, it is most definately not right.

Politely but firmly tell the Estate Agent that you do not need/want the services/input of their FA. Also, I never show a Mortgage In Principle to an EA. An EA quite rightly needs to establish that you are financially able to proceeed if your offer is accepted. However, you should only provide this 'proof' after an offer has been accepted. EA's, however use this situation to try and pressurise you to use their Financial Advisor. This goes against their Code of Practice, unless they make it explicit that it is not a requirement for you to use their FA, and also that there will be no negative consequences if you don't use their FA. They want you to use their FA because it generates income for an in-shop service (&/or the FA gives the EA some financial reward for passing on business to them). Not infrequently, though EA's want buyers to use their FA so that the FA can see what your finacial position is and then (illegally) pass this info on to the EA so that they can put pressure on you to raise your offer up to (and beyond) your financial comfort zone/ability.

See the Property Ombudsman's website here:

http://www.tpos.co.uk/make_complaint_sales.htm

Then look at the Code of Practice for Sales which you can download from the above webpage.

See Section 6 of the Code:

Discrimination

6c By law you must not discriminate, or threaten to discriminate, against a prospective buyer of the seller’s property because

that person declines to accept that you will (directly or indirectly) provide services to them. Discrimination includes – but

is not limited to – the following:

- Making it a condition that the person wanting to buy the property must use any other service provided by you or anyone else.

You tell the EA, politely (but firmly) that if your offer is accepted you will provide proof that you have sufficient funds to proceed with the purchase. This should be in the form of a short letter from your solicitor stating that they have seen proof that you have sufficient funds to proceed with the purchase. This letter should not have any other details about your financial situation - it should not state what you will be putting down as a deposit, not how big your mortgage will be.

The above is the approach I have always used without any problems.

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Just put an offer in on a house and the EA said I need to get a mortgage agreement in principle and come in and show it to their Indenpendant Financial Adviser first. I'm sure I didn't fo that last time a bought a house 10 years ago. Is this normal practise nowadays?

I made a verbal offer on a place which was accepted. Although I didn't have the mortgage agreement in principle at the time the EA mentioned he would have to have see it and he didn't say this when I made my verbal offer but only after he called me back to say it had been accepted. The place where I got my mortgage told me these mortgage in principles hold a lot of weight these days. It just depends on the EA I suppose if they want to see it up front or will be a little more relaxed about it but it seems one way or another an EA will want to see it.

One place I put a (low) offer on ( biggrin.gif ) the EA asked me if it was a serious offer. I was puzzled by this and I told them that is my offer if it's of no interest then I will walk away but I wasn't going to all the expense of having a solicitor put an offer in writing for the vendor to turn it down as too low. The EA didn't seem to accept this so guess what... I walked away. They lost a sale and the latest I see is that the vendor has changed EA biggrin.gif ... but no sale of the house....

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Just put an offer in on a house and the EA said I need to get a mortgage agreement in principle and come in and show it to their Indenpendant Financial Adviser first. I'm sure I didn't fo that last time a bought a house 10 years ago. Is this normal practise nowadays?

Can remember the first time I bought a house and got some monkey in a cheap suit and curly up shoes tell me the same, this was before he'd even shown me any houses. Needless to say I wasn't best pleased at the time, but I can fully understand why it's done, especially now since banks are not lending like they were. The last thing the EA wants to do is to get the vendor all excited only to have to tell them you didn't qualify for a mortgage two days later.

I look forward to the day when a few kilos can be lobbed on the desk to separate the men from the boys...

Edited by MrFlibble

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Been to building society, all looks good. Got to go back and get 'agreement' tomorrow once they've 'put all the figures in'

I'm guessing that they can't see how much I've got from the agreement as it'll be about 65% of the amount I've offered (the other 35% is from savings)

Please don't tell me they'll want to see my bank statements for the other 35% ?!

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Why not get your solicitor to confirm funds in place. Why should the EA (who works for the enemy) get to see anything to do with your finances. I can however see the need to the EA to know that your offer can proceed.

Quite right...tell them to contact your solicitor if they require conformation of funds.... you do not have to give the estate agent or associated vested interests any personal financial information. ;)

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When EA's ask for confirmation of funds I offer to take them to a bullion vault and show them around

They soon get an idea of what they're dealing with

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When EA's ask for confirmation of funds I offer to take them to a bullion vault and show them around

They soon get an idea of what they're dealing with

:lol: you are not called wealthy for nothing.

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Why not get your solicitor to confirm funds in place. Why should the EA (who works for the enemy) get to see anything to do with your finances. I can however see the need to the EA to know that your offer can proceed.

+ 1

EXACTLY the same thing happened to me. Refused to deal with the estate agent, told them never to phione me again and conduct ALL enquiries through my lawyer. This is a disgraceful scam and an underhand attempt to poach business. Lawyers are becoming aware of this. Their IFA is going to try and sell you mortgage, insurance, etc. If you ask me, they are brewing up a new misselling scandal, the f'ing idiots.

They were very rude to me, but I pointed out that I couldn't care less about what they thought and told them to go away.They are lying toe rags.

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Just put an offer in on a house and the EA said I need to get a mortgage agreement in principle and come in and show it to their Indenpendant Financial Adviser first. I'm sure I didn't fo that last time a bought a house 10 years ago. Is this normal practise nowadays?

Just tell them "No thank you. my solicitor will deal with that after the offer has been accepted".

Don't get annoyed - just smile and be dismissively assertive - that means saying the above quickly and pausing - forcing him to respond.

You need to do with a smile but without a raised voice or sighing :) - Dead pan delivery work best.

Do not see the IFA - it will be a total waste of your time and will only serve to obligate you to continue the sale.

Not only that - it stops you going to other EAs.

Its the same trick that car dealers pull.

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Just tell them "No thank you. my solicitor will deal with that after the offer has been accepted".

Don't get annoyed - just smile and be dismissively assertive - that means saying the above quickly and pausing - forcing him to respond.

You need to do with a smile but without a raised voice or sighing :) - Dead pan delivery work best.

Do not see the IFA - it will be a total waste of your time and will only serve to obligate you to continue the sale.

Not only that - it stops you going to other EAs.

Its the same trick that car dealers pull.

If you want to really cause grief, say that you don't like the look of the IFA, otherwise you would be coming in. Cue bad feeling in the office between the EA and the IFA. :P

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
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      • Even
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      • up 5%



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