Do I Have to Use the Estate Agent’s Mortgage Broker? Know Your Rights When Buying Your Home

If you watched last night’s Panorama episode on the BBC, you probably felt a bit uneasy (and possibly a bit cross). It laid bare the practice of a few estate agents pressuring buyers into using their in-house mortgage brokers and solicitors.

This is known as conditional selling, and it can make you feel like your dream home is dangling on the end of a string unless you play by their rules. But the reality is, you are under no obligation to use the estate agent’s mortgage broker or conveyancer.

Legally. Officially. Full stop.

The Code of Practice is Clear

According to Section 9 of the Property Ombudsman’s Code of Practice for Residential Estate Agents, the rules couldn’t be more straightforward.

Section 9c states, “By law you cannot make it a condition of passing on offers to the seller that the person wanting to buy the property must use services offered by you or another party.”

And if that wasn’t clear enough, they go on to state:

“You must not discriminate, or threaten to discriminate, against a prospective buyer… because that person declines to accept related services.”

Just for clarification, discrimination includes things like

• Not passing on your offer to the seller
• Delaying the offer to apply pressure
• Misrepresenting your position
• Giving early access or viewing priority to those who agree to use the in-house services

A “hot buyer” is not just someone who will also use their in-house services.

Remember, however, that it is perfectly reasonable for an Estate Agent to ask for you to be “qualified”. After all, they want to know that you can afford the property you are buying and can obtain a mortgage. Anything you buy, people want to know how you are going to pay for it. If you already have an Agreement in Principle from a lender, that’s great and will help. Many good agents will be happy to speak with your chosen broker. When it comes to legal matters, always obtain an independent quote so you can compare the costs.

The agent does not want to recommend a buyer to a vendor only to see that fall through because they can’t get a mortgage. There’s a line, however, so if an estate agent tells you that your offer will be “stronger” if you use their broker or solicitor, that’s not just misleading, it’s just plain wrong.

Know Your Rights and Use Them

We always remind our clients that mentioning Section 9 of the Code of Practice, particularly subsection 9c, is often enough to reset the power dynamic. You’re not being difficult, you’re being informed. It shows you know your rights and won’t be pressured into decisions that aren’t in your best interest.

And knowing your rights puts you firmly back in the driver’s seat.

Why Do They Push Their Own Broker?

Estate agents often have financial arrangements with their in-house brokers or conveyancers. Some even own them outright. So when they nudge (or push) you in that direction, it’s usually not about helping you, it’s about hitting referral targets and earning commission. Whilst let’s face it, this is not inherently evil, businesses exist to make money, of course, the issue is it’s just not about you and what is in your best interest.

Why Using a Service Independent of the Estate Agent Makes Sense

Working with a broker who is independent of the agent, ie, not owned by them, could well be a much better decision for your home-buying journey. Some of the reasons to use Coreco are listed below:

• Whole-of-market access – We’re not tied to a panel. We search hundreds of lenders to get the best mortgage for you.
• Truly impartial advice – No strings, no pressure, just clear, honest guidance that puts you first.
• Personal service – Buying a home is stressful enough. We’re here to make things easier, not harder. And we only act for YOU.
• Choice of conveyancers – We work with trusted legal experts who work for you, not the estate agent’s sales pipeline.
• Complete transparency – We’ll explain every option, every step, in plain English – no waffle.

What to Do if You’re Being Pressured

If you’re feeling pushed or cornered, here’s what to do:

• Ask the agent to confirm their position in writing.
• Reference Section 9 of the Property Ombudsman’s Code of Practice – particularly 9c.
• Report any unethical behaviour to:
  • • National Trading Standards Estate and Letting Agency Team
    • The Property Ombudsman
    • Your local Trading Standards authority

You can also mention this blog and let them know, “I’ve spoken to an mortgage broker who knows the code – and so do I.”

Buying a home should be an exciting, not intimidating, experience. You deserve the freedom to choose professionals who are genuinely on your side, and that includes your mortgage broker and conveyancer.

So don’t let anyone make you feel pressured into picking someone just because “it’s easier” or “your offer will be stronger.” That’s not how it works, and we’re here to back you up.

It is okay to recommend, after all, as we recommend some trusted professionals, such as conveyancers we have worked with and have consistently had a good experience with. Still, we would never insist that you use them.

If you’re ready to discuss mortgages without the pressure, with someone who works directly for you, you can call us on 020 7220 5110 or click here.

And if you don’t feel ready yet, or want to get another opinion, or feel another broker will work better with you (there are some great ones around), that’s also cool. It’s your choice.