Mortgage brokers and financial advisers have called for tighter controls over estate agents, says the Financial Times.
Complaints about agents include forcing buyers to use their own in-house mortgage brokers; pressurising advisers to provide proof of earnings and bank statements; and undervaluing homes to sell to contacts such as developers.
One broker alleged that a local agent makes buyers sign an agreement which states that they cannot make a purchase unless they use its in-house mortgage service.
The adviser said: “In two cases, people have pulled out because of this. It is diabolical.”
Comments (2)
A little ironic, the mortgage industry saying we need tighter controls in agency?! Pot, Kettle springs to mind. With a bigger appetite to lend money, lenders will find a way to help brokers to do the business, I can assure you. In an environment where aborted sales have risen, MMR and a shift towards a buyers market, Estate Agents have a duty of care to ensure that they have checked out their buyers before entertaining an offer. Its mad to think that any Tom, D*ck or Harry can walk off the street, make an offer and get the process of buying a property underway, it's an absolute must that a buyer should be checked out, but some agents don't actually do that?! That aside, I do agree that forcing people to use their broker and signing agreements isn't on. It just shows a lack of professionalism and skill in getting a mortgage appointment.
We have many a distressed buyer/applicant complaining of the same problem…….. and they (the offending Company) keep on doing it and keep on getting away with it.