Why would an estate agent want to know how our funds are made up?

[Letsgotocornwall]

We've had an offer accepted on a property, the estate agent wanted proof that we were able to get the mortgage up to the amount, etc. Our lender has sent details verifying we can pay the offer price. The estate agent have now asked how this is made up? I.e. How much deposit, how much mortgage? Is this usual?

[GinIsIn]

Of course it's normal - anyone can say they have X amount. The estate agent needs to be sure you can actually provide that sum before they agree to sell you the property.

[Letsgotocornwall]

I understand they would want to check that we actually have the money, our lender has already verified that. I don't understand why they need to know what percentage is deposit/mortgage?
We have a fairly large deposit and I don't want them to know hat we could probably get a higher mortgage.

[Floggingmolly]

Why don't you want the estate agent to know you could have got a higher mortgage?

[Mutiny0nTheBunty]

We bought a house last year and the Agent just wanted to see our mortgage in principle confirmation before we progressed. Don't remember them wanting to know how it was made up.

Do you think someone with a higher LTV would be seen as a higher risk maybe? I know if someone is a cash buyer it improves their position, so maybe the same is true of people with a lower LTV.

[ScoopyDoo]

I think you've probably realised why, in a way. They want to know how reliable you are, and having a larger deposit means that your agreement in principle from your mortgage provider is less likely to collapse when you make a full mortgage application. And yes, they are probably trying to work out if you can afford more/likely to be pushed higher. So if you chose to disclose your large deposit, perhaps present yourself as a reliable buyer, (which the sellers should value) but make clear that the offer you have made is the one you will stick at.

[Bluntness100]

I'm curious as to your issue also. Just tell them. You're buying the house, they want to ensure you have the funds both in cash and mortgage.

[Letsgotocornwall]

The estate agent are working on behalf of the vendor and we've not had the survey done yet.
I just wondered if it was usual for them to ask for this detail?

[Bluntness100]

And yes, they are probably trying to work out if you can afford more/likely to be pushed higher

I'd be very surprised if that was true. The offer has been accepted. They will not push higher. It's done. We had a 75 percent deposit on our house and could have borrowed much much more than we did. Once the offer is accepted it's into the process of selling it.

[Letsgotocornwall]

As pps have said, I think that if they know that our mortgage amount is low, they may try to push for more.

[MarshaBrady]

Sounds normal to me, except I don't think your reason is why they'd want to know.

It's more likely to be because a larger deposit makes you a safer bet.

[chipscheeseandgravy]

We had to prove to our solicitors how much was deposit and where that deposit came from including proof. So savings from additional earnings. This was due to money laundering. Maybe it's the same for your EA.

[emma8t4]

We had to provide our decision in principle which showed the amount we could borrow and the LTV % so your deposit could be worked out from this.

[Therealslimshady1]

It is a plus to have a large deposit

We had one, and the EA persuaded the seller to go with us, as we were good buyers

Or something like that.

Nothing sinister anyway, and we were not pushed to a higher price. If anything, the seller moved quickly, knowing we were ready to go, and that there'd be no financial issues.

EAs and sellers love a cash buyer, or large deposit buyers.

[littlepinkgiraffe]

It's probably the same reason that solicitors have to ask - anti money laundering purposes. Solicitors have to check by law and I think estate agents have to do all the AML checks too now.

[FuzzyOwl]

It could be that even though your offer has been accepted, somebody else has put in an offer and they want to see which potential buyer is the more secure. Having a large deposit goes in your favour and it also means to are less likely to back out, as you aren't pushing yourself to the max for the property.

[littlepinkgiraffe]

www.propertyindustryeye.com/agents-warned-that-new-anti-money-laundering-requirements-drawing-nearer/

Link confirming new legislation which was enforced in June this year.

[StarTravels]

Could it be because they want to make sure you can fund the 10% deposit? I know in some cases you can agree to less but perhaps the vendor need your 10% to make up the 10% for their vendors?

I've not been asked this question before so I can't imagine it's that crucial to a usual sale. I did get some very overly nosey questions from the lady we were buying out current house from. The EA just forwarded me her email and I just replied that I wasn't willing to disclose the ins and outs of my financial affairs but they can speak to my accountant / financial advisor if there are any problems and reiterating I had a mortgage agreed in principle for the necessary amount.

[EssentialHummus]

Today 13:05 Floggingmolly

Why don't you want the estate agent to know you could have got a higher mortgage?

I am hugely cynical towards estate agents and would wonder whether they'd use the info to try push up your offer somehow (fabricating another buyer, encouraging vendor to ask for more, that kind of thing).

[PickAChew]

They wouldn't be a decent EA if they allowed someone to make an offer who wasn't really in a position to proceed. They don't keep clients on the books by allowing them (and people further along the chain who they in turn make an offer to) to be messed about.

[PickAChew]

DH had an offer accepted on a house without it being the highest offer, presumably because he had a decent deposit, at a time when 100%+ mortgages were being handed out like smarties, so looked like a safer bet.

[Floggingmolly]

The offer has been accepted, Essential, or I'd have thought the same.

[HipsterHunter]

higher deposit % = more chance your AIP will go through

[FuzzyOwl]

@Floggingmolly our offer was accepted as well and then we were told there was another couple who viewed the house before us and had taken a while to decide, but put in an offer after us. Eventually they went with the other couple, even though we offered more than the asking price (and were in a better financial position) because the other couple were first time buyers and we had a chain.

[minipie]

IME once you've had an offer accepted, most estate agents are more interested in getting the deal through and getting their commission, rather than trying to squeeze an extra few £ from the buyers and risking have the whole deal fall apart. I wouldn't be too worried.

Unless you think the vendors are the type/in a position to try to get more - but if they are also moving then this is unlikely as they won't want to rock the boat either.

Far more likely they are just trying to see how solid a buyer you are