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A mortgage broker has written to her local MP calling for the regulation of estate agencies in the UK to put a stop to conditional selling.
Emily Franks, director of Emily’s Mortgage Services, wrote to Jerome Mayhew, MP for Broadland and Fakenham, to express frustration at conditional selling practices by estate agents.
She wrote: “As an independent mortgage broker, I am in the incredibly privileged position of being able to help people buy property, whether it be their first home, their next home, their forever home or an investment home.
“Client’s should have the freedom to choose who gives them this advice and not feel that they will lose a property if they do not jump through hoops.
“But there are some poor practices that are ruining property transactions across the UK and we need to take action because it has been happening in the industry for years and, at a time where clients are potentially more vulnerable than ever, this is not okay.”
Franks called for the regulation of estate agencies in the UK saying a code of conduct was not sufficient.
She said the main problem was conditional selling, with examples including:
+ We cannot put your offer forward until you have spoken with our mortgage broker
+ Our vendor will not accept your offer until you use our mortgage broker
+ You have to use our broker because the house is for sale with us
Franks wrote: “As you are aware, none of this is true and clients are free to utilise any broker they wish to but the above practices are causing real problems with clients getting the advice they need and deserve.”
She explained the FCA regulates brokers to ensure they identify vulnerabilities, treat customers fairly and adhere to strict principles when giving advice.
“Client’s should have the freedom to choose who gives them this advice and not feel that they will lose a property if they do not jump through hoops,” she said.
She explained estate agents receive commission for referring to their in-house brokers.
Franks said this is a concern as they could be financially motivated to refer clients more forcefully than actually considering what is best for the client.
She added: “Every part of the property transaction is heavily regulated, from the broker, the lender, the conveyancer and even the surveyors, yet the ones that facilitate the transactions have no regulation at all and it is a growing problem within the industry that threatens the very integrity of the property buying process in the UK.”
Her MP agreed to raise these concerns directly with the Ministry for Housing, Communities and Local Government.
Panorama exposes conditional selling by estate agents
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