I offer as examples two recent cases. In the first, a couple wanted to buy a new build apartment, which came with a £11,500 developer cashback offer.
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The client had a mortgage quote from the developer’s preferred broker and approached me to see what deal I could get them for comparison. I sourced a mortgage from a different lender which met the clients’ circumstances and requirements and would have cost them £188 a month less than their existing quote.
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When the client went back to the house builder, the company agent said that the cashback offer would be withdrawn unless the client went with the preferred broker. Unfortunately the clients, while infuriated with this threat, felt they had no choice but to go with the poorer mortgage and they are now locked into a two-year deal, paying £4,512 more than they need have done. Hardly in the clients’ best interests.
In the second case, a couple wanted a mortgage for a new build apartment and I had sourced a suitable mortgage. They went back to the developer's agent who told the clients that the only way he could guarantee completion in the required timescales of eight weeks was if the client used the developer’s preferred mortgage broker and solicitor. Again, hardly in the clients’ best interests.
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We often see TV programmes, advising buyers of foreign property to be cautious of using the seller’s or seller’s agents’ recommended solicitor or loan agent, yet here we have the same situation in the UK.
Having preferred partners is one thing, but resorting to threats is hardly ethical.
Regards
David Duncan
Independent mortgage specialist
