A quarter of home owners led to believe they had to use estate agent’s mortgage broker

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A quarter of home owners have felt they had to use a mortgage broker recommended by their estate agents, the Financial Conduct Authority (FCA) has revealed.

The regulator has undertaken a poll of almost 13,000 adults about their experiences and understanding of financial products, dubbed the Financial Lives Survey.

Estate agents are barely mentioned in the report, except for three brief questions revealed in the notes.

Mortgage holders were asked if they felt they had to use the mortgage broker recommended by the estate agent, with 26% saying yes.

Respondents were also asked what influenced them to use an adviser at a mortgage lender and separately why they used a particular mortgage broker.

Only 6% overall said an estate agent recommended using a mortgage lender’s adviser, compared with 53% going to a bank branch or 37% consulting a lender they have used before.

Mortgage holders were separately asked what influenced them to use a mortgage broker, with 23% citing estate agent recommendations.

This may go against guidance from the National Trading Standards Estate Agency Team at Powys County Council which says estate agents should not pressure potential buyers to use associated services such as an in-house mortgage broker.

The FCA is due to issue a report on the mortgage market next spring, which is expected to touch on the relationship between brokers and agents.

Meanwhile, the Financial Lives Survey also found 15% of mortgage borrowers would struggle if repayments went up by less than £100 per month.

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Written by: Houseladder