I’ve seen and heard many times about investors (and homebuyers) being told they must use the estate agents or developers chosen or in-house mortgage broker before they’ll put forward an offer.
This has nothing to do with ensuring the sale completes and everything to do with them earning referral fees off each other.
The main issue however is using another broker can cause real problems with your applications and credit profile if different brokers submit different information about you, possibly even leading to a CIFAS fraud alert.
So when I saw the article below and in particular the following paragraphs I thought I’d post it here; keep a copy and next time an agent/developer pulls this stunt perhaps you can direct them to it!
“Unscrupulous agents who make it difficult for buyers to offer or proceed to buy without speaking to their own mortgage service provider are acting against guidance issued by the Office of Fair Trading on the 2008 Consumer Protection Regulations. This guidance clearly states it is illegal for estate agents to put undue pressure on buyers to use their ancillary services, such as mortgages.
Violating this legislation has severe consequences and could result in the agent receiving fines or even a prison sentence.”