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Conditional selling

Journalist: Anna Sagar, Mortgage Solutions / Specialist Lending Solutions

ended 11. August 2023

Interested in speaking to mortgage brokers about conditional selling and whether it is becoming more prevalent in the market. 

This tweet suggests that Connells is using conditional selling to pressure customers into using in-house mortgage services, is this something that is more widespread across the sector?

6 responses from the Newspage community

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Stephen Perkins
Managing Director at Yellow Brick Mortgages
As large corporate estate agencies struggle with the slowing housing market, dropping house prices and downward pressures on their selling fees, they fall back on the old faithful approach of conditional selling their overpriced mortgage advice and conveyancing services to balance the books.

They will do it under the guise that the seller prefers someone doing everything in house, but no seller really cares where a buyer goes for their mortgage or conveyancing as long as the price is right.

I fully understand the benefits of verifying offers and asking for proof of an agreement in principal but forcing people to use your services in order to have their offer accepted is a tactic of the lazy bully and the industry should stamp out this illegal practice.
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Justin Moy
Managing Director at EHF Mortgages
When volumes of property sales fall this becomes a more common problem, where estate agents are naturally looking to maximize the income from each case. What is ignored is the poor buyer, who can feel pressured by the agent, and doesn't want to lose their potential home either. Is the agent creating a vulnerable client here??

If the buyer is well prepared, has their mortgage approval in hand, and solicitors are ready to go, there is no need to cause doubt in the buyer and unravel hours of time and effort, as well as often costing more in fees.

Connells are not on their own, the environment of estate agency and reliance on commission/fee income drives the wrong behaviours from a minority. And does this pre-conceived setup provide for an impartial service that is so important to the integrity of the buyer, the seller, and all involved?

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Elliott Culley
Director at Switch Mortgage Finance
Unfortunately this is a practice that has never been stamped out and in the current market I am seeing more first time buyers and home movers affected by this practice from various estate agents as business levels are lower. It adds unnecessary stress to clients on an already stressful process, as they worry there offers will not be accepted on properties they want to buy.
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Lee Gathercole
Co-Founder at Rebus Financial Services
This is a big problem in the property sector, we see this far too often where first time buyers & homemovers aren't able to put their offer forward or reserve a property without dealing with the "in house" mortgage advisor. Conditional selling is penalising first-time buyers and homemovers. It is adding unnecessary stress on people who are trying to buy their dream home just because they would like to use someone independent. Hopefully, tougher penalities come into play!
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Rhys Schofield
Brand Director at Peak Mortgages and Protection
When branches are so heavily incentivised on securing sales where they also act on the mortgage and conveyancing it can come as no surprise when conditional selling happens - especially when there seems to be zero consequence when they get caught. Culturally something has to change in these firms and I can't see that happening without some sort of punishment.
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Kirsty Wells
Director at Blueprint Mortgages & Protection
This is something that has been a problem for many years. Some of the big corporate estate agents set their staff big targets on mortgage referrals etc and as the housing market has slowed down they then turn to underhand tactics. This should not be allowed but there does not seem to be any consequences for these agents.

I had a client previously who lost the property he wanted as he wouldn’t agree to using the in-house broker and the agents explanation was that because they were using an independent broker they could not verify the finances and they had another buyer who was willing to use their recommended conveyancer and their in house broker so they could verify the details and their seller was more comfortable with this.

Also some clients have been advised that they can’t view a property until they have spoken to their in house mortgage advisor to verify their finances , even though they already have a DIP in place.

It is very frustrating.