Third of buyers pressured to use estate agent linked mortgage broker
Research conducted by Boon Brokers surveying 1,958 UK mortgage holders found nearly a tenth of buyers felt using the suggested broker would give them preferential treatment while 4% revealed they were explicitly told that would be the case.
Younger and inexperienced buyers were more likely to be targeted by estate agents wanting them to use their preferred broker firm, as the proportion of buyers being told they would be at an advantage if they did this rose to a tenth for those aged 18-25.
As a result, three-quarters of buyers aged between 18 and 25 ended up using the mortgage broker linked to an estate agency when purchasing their home.
Overall, 44% of homebuyers use the adviser suggested by an estate agency when looking for a mortgage.
However, the widespread sharing of personal data was a concern for those who were encouraged to use recommended brokers as on average, respondents said they dealt with three different estate agents when buying their property.
If the buyers were to speak to each suggested broker, that would result in the sharing of personal and financial information with multiple firms, which was a worry for 24% of respondents.
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 that home 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,” he added.