Agent asking for Mortgage approval letter to accept Offer

G

Ganvir

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Hi,

A leading estate agent has asked me for Mortgage Approval letter or proof of funds, before they discuss the offer with the vendor. This is odd because normally this is not the case.
I feel this gives an unfair advantage to the Estate agent, as they can manipulate the price as per the mortgage approval limit.

Can you please advise on the course of action I should take.

Regards,
Ganvir
 
It's standard procedure to prove you have funds. But you should not tell him how much, you just photocopy your approval and delete your mortgage amount.
 
yes standard procedure nowadays to ensure you have the funds available.
Similar to the fact a lot of buyers now won' accept bids unless your house is sold rather than for sale/sale agreed etc.
 
Thanks Bronte, Agree with your advice. That is fair, but I don't think they would agree to it.
Bronte said:
It's standard procedure to prove you have funds. But you should not tell him how much, you just photocopy your approval and delete your mortgage amount.
Click to expand...
 
They will agree to it. They have to acknowledge that a buyer has a right to privacy regarding their personal finances. If you show proof you actually have approval then that should reassure them that you are serious. What they are trying to avoid are bidders who may not have even gone to the trouble of seeking finance yet, who may be making bids they will not be able to back up.

Otherwise, what next? Asking for your bank statement? Maybe you could turn out your pockets going in to house viewings.
 
I recently went to EBS to apply for Mortgage. One thing advisor mentioned was that some agents wouldn't even do a viewing unless you could prove mortgage approval. She mentioned tat ye would provide a letter without mentioning amount approved for the purpose. So may be becoming more standard practice.
 
It should be possible to get a generic letter from you bank to state you have mortgage approval. However, try to avoid letting the E.A. or the vendor know how much your approval is for.
 
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