When searching for a mortgage, there’s no one right way to find one. However, estate agents will usually be very keen to get you to use their in-house mortgage advisor. Generally, they’ll have sales targets to hit, and will also earn commission for selling mortgages.
Due to this, estate agents can be quite pushy when it comes to getting you to choose their broker. With some evenly routinely misleading borrowers into thinking going with an in-house broker is required to secure the property purchase, or get a lower price.
Most in-house brokers should advise you while taking your specific needs and requirements into account, and recommend mortgages after looking through a wide range of lenders. While you always have the choice it might be better for you to avoid using the estate agent’s mortgage broker.
What are the rules?
Estate agents are of course legally allowed to recommend their brokers, but they mustn't penalise you for not going with them. Any offers you make as a buyer must be referred to the seller. It doesn’t matter whether you have taken the mortgage from the broker recommended by the estate agent or not. This is an accordance with the 1979 estate agents act.
The issue of misleading has become a growing concern. So much so that a formal investigation was launched by the City Watchdog to look into these practices a couple of years ago. Plus a survey from Which? found that 26% of 1,720 recent homebuyers ended up going with the mortgage broker that their estate agents had recommended.
Worryingly, up to 17% of these buyers had been told they would be refused viewings unless they used the in-house broker. 25% were informed that the whole process would be a lot easier if they chose the estate agent’s recommended broker, and 14% were told they would have a better choice of mortgage deals.
What if I used an estate agent's broker?
If you decided to actually use the in-house broker that your estate agent recommends, there’s nothing wrong in principle with this choice. However, many homebuyers feel like they have to do this and that they don’t have another option.
When your buying a new home, you should be made aware that using an in-house broker won’t give you any advantage over using an independent broker of your own choosing. Estate agents putting pressure on you by making the impression that going with them will get you a better deal, isn’t truthful. They should never refuse to take you on a viewing just because you decided to go with another broker.
If you do end up using their broker, then make sure you double-check the rates being offered to you. This way you can see whether or not they are really the best for you. Also, look into the fees they are asking you to pay too.
The advantage of an independent broker
While using an estate agent's mortgage broker may still work for you, often they operate from a very small choice of lenders. This can affect your chances of getting approved but also of truly finding the best deal for you and your circumstances.
An independent mortgage broker will have access to the whole of the mortgage market. This is why savvy home buyers immediately recognise the advantages and value of using an independent broker.
Everyone has different circumstances when applying for a mortgage deal and sometimes they can be quite complex. A reliable and experienced independent mortgage broker is more likely to find a deal that fits your needs better, and can often make the difference between you actually being offered a mortgage or being rejected.Choose TaylorMade
At TaylorMade Finance, our aim is to design a specific mortgage solution that perfectly meets your individual needs. Our recommendations are of course always ethical, compliant and affordable.
Our dedicated and experienced team will work with you to take the stress and worry away from the mortgage process. Taking you through each step, from application right through to completion in your new home. With us, you’ll be able to build your future on solid foundations, and we’ll provide you with an annual review to ensure your mortgage remains the most suitable.
Get in touch with us today on 0345 305 2540, or info@taylormade-finance.co.uk
