Conditional selling of properties widespread and ‘almost standard practice’ at many estate agencies or so a group of mortgage brokers have claimed, saying they want action to prevent the practice.

Conditional selling is when an estate agent tells a prospective buyer that in order for their offer to be put forward on a property, they must use the agent’s in-house  mortgage broker.

Mortgage advisers across the UK have told a financial news website that they’ve seen a significant increase in homebuyers being pressured to use in-house services, especially when purchasing new-build properties.

There are some of the larger firms that are certainly repeat offenders”

Richard Dana, founder and CEO of Tembo Money (main image) says: “We see conditional selling particularly from developers and estate agent linked mortgage brokers. There are some of the larger firms that are certainly repeat offenders.”

And it is in no way confined to new builds, with Nick Jones, mortgage sales and marketing director at Access FS, saying: “We are seeing a surge in reports of estate agents trying to strong-arm buyers into using in-house brokers.

“Agents are prioritising in-house advisers to secure a referral fee. While that works out well for the agent, it may not be the best option for the client.”

Outrageous

He adds: “It’s outrageous. Even more worrying is evidence that these sorts of shady practices are institutionalised. It’s a systemic stitch-up.”

The FCA has said that conditional selling is back on its radar and it will “continue to act where we receive intelligence and reports of homebuyers being pressured to use estate agents’ in-house mortgage brokers”.

But it is reported that most brokers are not convinced, and Access FS’s Jones adds: “The Government and the FCA need to enforce compliance with existing regulations. Until then, brokers will have to help themselves”.