Mortgage adviser criticises local agents for 'tricking buyers'

A mortgage broker has hit out at estate agents for forcing prospective buyers to visit their branches to sell financial services to them.

Mike Hayes, managing director of Hayes Mortgages, revealed his experiences in a popular LinkedIn post where he claimed an agent refused to pass on an offer from a client who had declined taking agreeing to speak with an in-branch broker.

He said: “Estate agents - please can we stop the practice of forcing prospective buyers to attend your office in person to make their offers, if your sole intention is to trick them into a meeting with your in-house mortgage advisor. 

“If the client wanted to use your services, they would enquire and ask.

“Following that, informing clients that smaller firms give poor service, that we choose lenders that pay us the most or that you have access to many rates that we don’t, is misleading and untrue.

“Not informing your vendors of our clients offer, conveniently after they have declined the services of your in-house broker is poor practice and wrong.

“If we all just work on the basis that doing the best job we can for each customer will then lead to more business in the future, there would be no need to play underhand tactics to try to win new clients. It doesn’t work and it frustrates the client and your vendor.”

Hayes added that his client has now found a new property via a different agent.

The post has received hundreds of likes and comments.
 

One, from the Association of Mortgage Intermediaries chief executive Robert Sinclair said: “There is always a gap between adequate regulation and good supervision. 

“Proper independent complaints systems and effective supervision controls brokers, but estate agency and lettings is still less effectively controlled. 

“Improving supervision over this sector must be in the interests of the good agents. Will they step up?”

Agents commenting on the post agreed that this was poor, and illegal practice and suggested Hayes should report the matter.

However, there was some confusion in the comments as some agents suggested reporting the matter to the NAEA rather than industry regulator The National Trading Standards Estate and Letting Agency Team.

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