Research from Boon Brokers found most buyers felt pressured to use estate agents’ in-house mortgage brokers.
The survey, run by TLF Research, covered 1,000 people across the North, East, West and South of England who had used an estate agent in the past two years.
Of those asked, 78% said estate agents should not have direct links to mortgage brokers.
80% said they had experienced crossover between getting access to view a property and being pushed towards using the agent’s mortgage broker.
85% did not know estate agents are not governed by any formal body.
Additionally, 18% said their offer would only be considered if they used the agent’s in-house mortgage broker.
96% said stricter regulations for estate agents were needed.
Meanwhile, 52% said they had been strongly encouraged or required to use the estate agent’s broker.
60% said fair access to property viewings should be guaranteed, no matter which broker was used.
The study followed the BBC Panorama documentary Undercover Estate Agent, which showed buyers being pressured by estate agents who worked closely with in-house mortgage advisers.
One in five (20%) buyers were only allowed to view a property if they used the estate agent’s broker.
42% had viewings directly tied to a mortgage appointment with the agent.
45% of those aged 25 to 44 were told they could only proceed if they used the in-house broker.
Only 6% of those aged 55 and over said the same, with Boon saying this created a disadvantage for first-time buyers (FTBs) who relied on advice.
Most buyers did not know that estate agents are not formally regulated, unlike mortgage brokers or solicitors, with 85% saying they were unaware of this.
96% said stricter rules were needed.
60% said buyers should always have access to property viewings, no matter which mortgage broker they use.
Furthermore, 78% said estate agents should not be directly associated with mortgage brokers.
Boon said: “There should be no association between brokers and estate agents. In conveyancing, the same solicitor firm – including subsidiaries – are not allowed to act for both buyers and sellers as it creates a conflict of interest.
“The same is true for estate agents that own mortgage brokerage firms or vice versa.
“The BBC’s Panorama documentary highlighted this clear conflict and how it causes unfair outcomes for consumers, who are often purchasing the most significant asset of their lifetime.”
