Putting in an offer on a house. EA asked us to 'financially qualify' with their appointed mortgage broker?

[buyinghouse]

So we are looking to buy in SW London. Viewed a house yesterday that we liked and called EA this morning to put in an offer for 95% of asking price.

The agent immediately started to pitch that as first step we should talk to a specific mortgage broker to get ourselves 'financially qualified' before he could proceed passing on the offer to the vendor.

I asked if that is their standard practice and if the said mortgage broker works for the same firm. He said the broker is independent but they just have a very good working relationship.

I said I have got an agreement in principle with one high street lender with a decent deposit (>20%). Wouldn't that be enough proof that I am financially capable to proceed with the offer? He said agreement in principle is not sufficient. I would either need a decision in principle, which he does not recommend for various reasons, or go through this mortgage broker.

(I did google decision in principle later and it seems to be the same thing as agreement in principle!)

I found it a bit fishy so decided to put my offer in email anyway and insisted that he passes it on to the vendor. He replied that he would but said I need to be ready to up it by another 20k to stand a chance.

We have bought and sold houses in our home country in Europe but this is first time we do it in UK.

Is this tactic common? I am not sure if there are indeed many buyers who do not have their financial in place and EAs are weary of them, or they just assumed that we do not look like the kind of couple that can afford a house in SW London? Or am I over-thinking it?

Picking up on one thing that you said, if you're planning on driving to Chertsey each day at normal working hours, you're far better off being on the A3 side of the Croydon/Wimbledon tramlink than in Colliers Wood or S Wimbledon - the traffic is horrendous and will add half an hour each way to your commute. It was the thing that I insisted on when we last moved as I had been commuting from Colliers Wood to Heathrow each day and couldn't carry on losing so much time!

Wouldn't surprise me if the EA is KFH. You are absolutely right that you have to look at the SOLD prices on Right Move and not the asking prices. You are right also that prices have declined in SW London from the high point of 2015/2016. There has been further decline 2017 and 2018 all down to Brexit. It sounds as though the vendor is not being realistic and no why pay over the odds in this bad market. I absolutely loathe estate agents having sold in a declining market in SW London in 2018 and the general codswallop they bring to the party for a very high fee.

@Svalberg thanks for the tip! But A3 is between Wimbledon and New Malden and Croydon is on same side of A3 as Wimbledon but further away? Did I misunderstand you or do you actually mean A24 that is between Wimbledon and Croydon?

The tramlink runs between Croydon & Wimbledon, but the critical part that affects traffic for where you plan to live is at the Wimbledon end, where it crosses the A298 by Hartfield Road in South Wimbledon (nowhere near Croydon, sorry for any confusion!). The combination of traffic lights and the frequent stopping of road traffic for the trams crossing the road makes it a nightmare. The A298 joins the A3 at Shannon Corner in New Malden but going from Colliers Wood or South Wimbledon you will need to go on the A298, so if you don't have to do the part before you reach Hartfield Road and the trams, you save SO much time.

Look on a map for Hartfield Road/Kingston Road SW19 and you'll see where I mean, ideally you need to be on the West side of that junction.

Actually, it may be the A238 at the crossing point, it becomes the A298 nearer the A3 - sorry!

I think I get you... I drew an illustration - so the tip is to choose area west of Merton Park tram stop?
ibb.co/7vQ1tnR

We do have Wimbledon on our radar but I haven't done much study on the area and we do not drive over there everyday now. Thank you for the valuable tips!

Yes - your map is correct! You really need to look further out than Colliers Wood. Raynes Park or New Malden might suit - both easy access to A3 and decent trains to Waterloo.

@buyinghouse Correct!

The Apostles area in Raynes Park is probably within your budget - something like this one

www.rightmove.co.uk/property-for-sale/property-66213897.html

Houses have come down in price near me, but are being more competitively priced - they're all going at less than the asking price but not by a huge amount less (20k or so)