Almost half used a mortgage broker recommended by their estate agent and 37 per cent of them said they felt “pressured” by the estate agent to do so, according to the survey for Boon Brokers
A study of 2,000 home owners shows that over a third have felt pressured by an agent into use its in-house mortgage lender.
The survey, for Boon Brokers mortgage advisers, involved what it calls a nationally representative sample of almost 2,000 UK mortgage holders.
Almost half used a mortgage broker recommended by their estate agent and 37 per cent of them said they felt “pressured” by the estate agent to do so.
There was also a false belief amongst many that using a broker recommended by the agent would secure them preferential treatment, to help ensure they get the property they wanted.
Those most likely to use their agent’s recommended in-house mortgage firm were predominantly young.
Some 74 per cent of buyers aged 18 to 24 did so, compared to the age groups 25 to 34 (52 per cent), 35 to 44 (46 were cent), 55 to 64 (48 per cent) and 65 or over (30 per cent).
So, it looks like younger buyers with potentially less experience and knowledge about the mortgage process were more likely to be pressured into using the agent’s affiliated broker or were unaware they had alternative options, concludes the mortgage broker.
The survey plays into the current debate within the industry about referral fees.
A recent report to government by the National Trading Standards Estate and Letting Agent Team recommends mandatory disclosure of fees to ensure consumers feel confident in the services they receive.
The proposal in turn follows a review into referral fees and their impact on buyers and sellers carried out by Trading Standards at the request of the Ministry for Housing, Communities and Local Government.