Access Financial Services has launched a campaign to support brokers when estate agents put pressure on home buyers to use their in-house mortgage broker.

The campaign will allow brokers who feel threatened by conditional selling to have access to a free letter template. 

The letter has been designed to be sent initially to the estate agent making them aware of the various parts of the Property Ombudsman’s Code of Practice for Residential Estate Agents that demonstrate this practice is against the law. 

The broker will also be able to provide the necessary financial qualification, including a decision in principle certificate and proof of deposit funds to prove that their client can afford the house purchase.

If the estate agent either doesn’t respond or continues to pressure the client, then Access FS advocates for the broker and reports the estate agent to the Property Ombudsman.

This will need to be done with evidence of the breach, including the letter sent to the estate agent and one from the client describing the pressure they have been put under.

The campaign comes after Access FS says a significant minority of estate agents use ‘intimidation tactics’ to ensure they get the home buyer’s mortgage business and commission from the house sale.

Access Financial Services chief executive Karl Wilkinson says: “Our own brokers have experienced the effects of this conditional selling by a minority of estate agents. It can cause clients distress and at times it prevents clients from being able to work with brokers they have a long-standing relationship with.”

“As well as helping our own advisers we wanted to offer our support to others in the industry who continue to suffer from this dubious practice. Now more than ever, as we head into recession, it is important for both brokers and estate agents, to support each other so that buyers can benefit from the best advice.”

“We often hear estate agents claim the need to financially qualify a buyer despite that buyer already holding an Agreement in Principle. While it is completely legal for estate agents to endorse the use of their in-house mortgage adviser, it is illegal for them to insist that a client uses them.”

“While the majority of estate agents operate within the Code and have a positive relationship with many mortgage brokers, it is time we stamped out the bad practice of the few who damage things for the rest. Our letter templates are a step forward to help accomplish this.”