I recently obtained a decision in principle for one of my clients. On visiting the office of the corporate estate agents even after they were informed of the DIP she was told that it was still necessary for her to see their in-house mortgage adviser. This was mooted on the basis that it would be better for them to monitor the purchase process!
Result, another decision in principle from the same lender and of course another footprint. Extremely embarrassed client telephoned me to explain that she would let the agent's adviser complete the mortgage as she was worried that her purchase might not go through!
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Now hears the thing, a solicitor cannot act for both the purchaser and the vendor so why should an unregulated estate agent be any different. Also were the actions of the estate agent's mortgage adviser within the principles of TCF and indeed was it ethical?
I write as the former owner of an estate agency and know full well the tricks that some of the corporate agents get up to. In many instances potential purchasers are not allowed to view a property until they have seen the agents mortgage adviser. Certain agents using this practice have been warned in the past by the OFT.
I normally tell my clients to get the agent to call me for confirmation of a decision in principle which I usually do by fax and this has worked extremely well. What I cannot understand is the statement in Mr Graves's letter and I quote "which to my way of thinking, means they had not sorted out the mortgage other than had it agreed in principle at best" . For your information Mr Graves 90% of my AIP's are closely followed by a full mortgage application.
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Of course it is the duty of the estate agent to protect the vendor but surely confirmation by a qualified broker is sufficient. Brokers unlike agents are empowered to certify documents to the requirements of lenders and solicitors. Not once in the case I referred to did the agent think it was necessary to contact me for confirmation of my clients ability to get the mortgage.
James Town
Mortgage Decisions
