Homebuyers “pressured” to use estate agents’ broker recommendation

Essex Home Finance
44% of homeowners who have used a mortgage broker used one recommended to them by or linked to an estate agent.
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44% of homeowners who have used a mortgage broker used one recommended to them by or linked to an estate agent, according to a survey of just under 2,000 mortgage holders.

The research, conducted on behalf of Boon Brokers, an independent mortgage broker based in Norfolk and Suffolk, found that 37% of them said they felt pressured by the estate agent to do so.

8% of mortgage holders believe that using an estate agent’s recommended broker would give them a better chance of securing the property they want, while 4% even said the estate agent openly implied that they would get preferential treatment if they were to do so. That figure rose to one in 10 in the 18-25 age category, which Boon Brokers said suggests that first-time buyers in particular may be being targeted.

74% of 18-25 year-olds who had used a mortgage broker admitted it was one linked to the estate agent.

Gerard Boon, founder and partner at Boon Brokers, said: “We regularly hear from homeowners who say they have felt pressured to use an estate agent’s mortgage broker and some have even been told it would help them get a better deal on the house they wanted, or that it would put them at the top of the list of potential buyers. Obviously, these practices are totally unacceptable and we would hope that most estate agents would be as horrified as us to hear these stories.

“Getting independent advice is always a good idea when making financial decisions – particularly one as big as getting a mortgage. But we advise thathome buyers should ensure that mortgage advice is truly independent from a broker who has whole of market access and who will not charge for advice. All brokers receive a procuration fee from a lender once a mortgage application has completed, so we believe that there is no need for additional fees to be charged to the client.”

Original Article from Best Advice 13/12/2020

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