Do I Have To Use My Estate Agent’s In-House Mortgage Advisor?

When you are buying a home, you do not need to go with the Estate Agent’s in-house Mortgage Advisor.

Stories About In-House Mortgage Advisors

We’ve heard of cases where the Agent has tried to insinuate that you could lose the property if you go with someone else. That is not the case. Some Estate Agents might even state that the seller would prefer you to arrange an in-house mortgage, but this is unlikely to be true either. The seller only cares that you are in a financial position to proceed.

Why Do They Push Their In-House Mortgage Advisor?

Obviously, the Estate Agents earn extra commission from you when you use their additional services. So, there is an incentive for them to try and persuade you. If you don’t like being sold to, here are some of the tactics to look out for:

  • A financial incentive for you if you use both their in-house mortgage and conveyancing services.
  • The Estate Agent saying they are not putting your offer forward to the vendor if you have not taken in-house Mortgage Advice. This is an illegal practice!
  • Quoting extortionate solicitor’s fees for a straightforward purchase.

There are several other ways you can arrange a mortgage without using the in-house mortgage advisor at your Estate Agent. In this article, we will try and help you decide who to use for your mortgage and how to make sure you are receiving value for money.

Do it Yourself Online

Some people are confident using price comparison websites to get an idea of the rates available. And this is totally understandable from a cost-saving point-of-view. However, please remember that it’s important to take advice at some point in the process. This is because buying a house is a very big deal and it’s important you get it right.

Here are some things to look out for if you want to have a go at applying online:

  • The rates advertised are ‘Best Buy’ rates – you might not qualify for this rate or meet the lender’s specific lending criteria
  • Some websites only display deals where they have a commercial arrangement with those lenders. Deals from other lenders not visible may be more suitable for you.
  • It can be expensive if you get this wrong. Check what fees are payable and when. If your application is declined can you get your money back?
  • You will solely be responsible for progressing your application. If you apply without taking advice, you will not benefit from any consumer protection such as FOS.

Go to your own Bank

You could arrange a mortgage directly with your bank. Lots of people used to do this but not so much anymore. People’s trust in the advice they receive from banks is much less than it used to be.

What do you need to be aware of?

  • Banks can only offer you their own products.
  • If your application is declined Banks can be reluctant to tell you why.
  • Appointments, especially ones out-of-hours, can be difficult to arrange.

Find your own Mortgage Broker

Some buyers are reluctant to hand over their financial details to an Estate Agent. They are worried that the vendor might find out what financial position they are in.

If you use a Mortgage Broker not connected to the Estate Agent, you can seek an Agreement in Principle. You can then provide this document to the Estate Agent to prove you are in a position to proceed. The agent will then most likely ask that you evidence your deposit too, along with ID.

A good Mortgage Broker will guide you through the full process of buying a home and give you open and honest advice. Here at CoventryMoneyMan, we can access 1000s of deals from across the market and aren’t tied to any particular lenders. Therefore, we can get the best deal most suited to you.

If you decide to find your own Mortgage Broker, make sure to take up any offer of a free mortgage consultation. Taking the time to find an advisor you like and trust can have immeasurable benefits in the long run.

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