Mortgage industry calls for tighter controls over estate agents

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.”

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  1. Ric

    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.

  2. Paul

    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.


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