Research from Boon Brokers has uncovered the extraordinary extent of conditional selling – where clients are pressured to use estate agents’ in-house mortgage brokers.
The Boon survey involved 1,000 people across the North, East, West and South of England who had used an estate agent in the past two years.
Some 80% said they had experienced crossover between getting access to view a property and being pushed towards using the agent’s mortgage broker.
One in five (20%) buyers were only allowed to view a property if they used the estate agent’s broker; 42% had viewings directly tied to a mortgage appointment with the agent.
45% of those aged 25 to 44 were told they could only proceed if they used the in-house broker.
Only 6% of those aged 55 and over said the same, with Boon saying this created a disadvantage for first-time buyers who were arguably less experienced.
Around 18% said their offer would only be considered if they used the agent’s in-house mortgage broker; 52% said they had been strongly encouraged or required to use the estate agent’s broker.
An overwhelming 96% said stricter regulation of agents was required, while 60% said fair access to property viewings should be guaranteed, no matter which broker was used.
The study followed the BBC Panorama documentary showing buyers being pressured by estate agents who worked closely with in-house mortgage advisers.
Boon reports that 96% said stricter rules were needed while 78% said estate agents should not be directly associated with mortgage brokers.
Boon said: “There should be no association between brokers and estate agents. In conveyancing, the same solicitor firm – including subsidiaries – are not allowed to act for both buyers and sellers as it creates a conflict of interest. The same is true for estate agents that own mortgage brokerage firms or vice versa.
“The BBC’s Panorama documentary highlighted this clear conflict and how it causes unfair outcomes for consumers, who are often purchasing the most significant asset of their lifetime.”
