Estate agent failed to pass on offer after mortgage broker said applicant had been turned down

An estate agent failed to pass on an offer after being told by a mortgage broker that the applicant had been turned down for a mortgage.

The would-be purchaser complained to the Financial Ombudsman Service after missing out on the property.

The FOS ruled that although mortgage brokers and agents did need to talk to each other, on this occasion they had shared too much information, leading to the agent deciding to ignore the offer.

A separate investigation by the Information Commissioner’s Office found the broker had breached data protection rules.

The FOS said that there was insufficient evidence to show that the broker’s actions had directly led to the applicant failing to buy the property.

However, the broker’s actions had caused the complainant “upset and embarrassment”. The FOS ordered the broker to pay compensation.

The case is highlighted in the FOS’s annual review for 2017/2018.

It is not known whether the failed buyer reported the agent in question to any of the property redress schemes. Legally, agents should pass on all offers promptly, and in writing.

The FOS review shows the number of mortgage-related complaints dropped 14% from the year before, to 8,917.

Just 23% of the complaints were upheld, down from a proportion of 31% the year before.

The FOS did express concern over interest-only mortgages, saying it had heard from a number of borrowers nearing the end of their mortgage term and who face losing their property.

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  1. Ric

    Broker and EA should talk to each other.

    Broker and EA get fined for talking to each other.

    Broker and EA decide not to talk to each other in future.

    Vendor complains that estate agent took buyers word everything was ok.

    EA fined as court reckons EA and Broker should talk to each other.

    Broker and EA decide to talk to each other again.

    Broker and EA get fined again.


  2. ArthurHouse02

    Ric i agree that the system is a touch screwed up, however by law we have to put every offer to the vendor. In this situation, it would be fairly easy to say to vendor, Mrs X has made an offer however she is unable to provide confirmation to us that she has been approved for a mortgage, in my opinion we should not accept her offer until she can provide proof of a mortgage approval. A good agent/vendor relationship ends the conversation there.

    1. Ric

      oh please, I know we have to put every offer to the vendor! My point was GDPR crept in as sharing information and talking when we should not… standard case should have said Agent wrong for not putting offer forward, however nothing wrong with the people involved updating where they were up to.

      Agent VERY daft for not doing that, he/she (the buyer) could have got placed elsewhere with a mortgage and become a good buyer. We have had buyers turned down by our advisers yet they have found a way with a particular lender and the other way around. So I am cool with that! but Agent in trouble for talking to the FS person about the case! come on…

      ********…. forget I ever mentioned our example above… don’t want the ICO on my back.

      or wait sorry…. am I ok posting to you…. please reply with your posting preferences.

      All typed with a smile. (although I am feeling grouchy today) sorry…. no offence to anyone named Grouchy, and no I have not actually felt i.e. touched someone called Grouchy. I mean feel as in an emotion) oh wait ******, sorry, I am not saying Grouchy is not worth touching if I had meant physical contact, I am sure anyone called Grouchy reading this is very nice…. oh I am in a pickle. Just nobody be offended or report me to whatever section of do-gooders are out there. I mean no harm.

  3. GeorgeHammond78

    ….’had caused the complainant “upset, embarrassment and had hurted them’… What was the compo they received?

    1. smile please

      Standard £250 no doubt.


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