What info do you have to give to estate agent when you make an offer?

[HangerLaneGyratorySystem]

Quick question - I've offered on a house, agent wants proof of funds and identity before they tell me whether or not it's accepted. So an AIP for a mortgage, which I have, but also a screenshot of my bank balance (where I've got my deposit). I am suspicious that they do this so that they can decide whether or not you can afford more and then start saying oh your offer is too low etc.

I understand proof of ID and AIP but just not sure where I stand on the rest. Even if the vendor does accept my offer, do I still need to show the estate agent the proof of deposit as well as passport and AIP?

They have to ask for proof of funds to comply with anti money laundering regulations.

😂It's not a global conspirancy to push up house prices!

If you don't want them to know your bank balance redact it.

I have to ask now - how much money we talking about here?😁

No it’s not. But an unscrupulous estate agent trying to get you to increase your offer because they know you can afford more is a valid concern. It does sometimes happen.

If I redact my bank balance, how can they see my bank balance, which is what they are asking for? its my savings account - where the deposit is. I only have the deposit and some money for fees - I actually have nothing else.

Maybe it would be better to ask on the current buying/selling thread; I need to know if this has happened to other people recently and its entirely normal.

Do you have mortgage advisor? They can confirm on your behalf. Or anyone who is regulated financial service person. I did it that way because I am not showing how much more I have...

Yes it’s normal. It’s so the seller knows you’re serious, before they spend their money on solicitors etc to enable to sale

Mortgage adviser could confirm, although if you only have the money for deposit and fees what's the problem?

Yes we had to do this. It's too prove you do have the funds available and aren't messing the buyer around.

Yes it's normal, anti money laundering regulations. They legally have to do due diligence.

This is not yet. This is to prove funds, not prove origin of funds.

It's entirely normal.

As a seller I want to make sure you can actually afford the place before accepting an offer incurring costs myself. I wouldn't accept an offer that hadn't been financially verified.

Proof of funds is perfectly normal. Just put your deposit in a separate account and send a screenshot of that.

Because my AIP says I could borrow £30k more in theory, but I know that would cripple me. That's the problem.

I think what's confusing me is that I have no idea if the vendor is interested in my offer at all at this stage. I made the offer on Monday, apparently they're still thinking about it.

Once I made myself AIP for the exact amount I needed to show before I got my mortgage advisor😂 with provider I knew I won't go with anyway

Perfectly normal. When I purchased my house last year, I had to go through this process. I provided the estate agent with a copy of my AIP along with a screenshot of my bank balance. With those two documents, I could have made an offer that was 20k higher, but the house didn't hold that value for me, and I wanted to reserve some funds for repairs. The estate agent never brought it up, but if she had, I would have simply stated that my offer was final. Try not to overthink it.

I think it's quite normal but I wouldn't worry about it - "I don't want to pay more" is perfectly acceptable and they can't force you to go higher, regardless of what they know about your finances. Most people decide how much they want to pay and pay that, they don't get hoodwinked into spending their maximum budget by accident.

Normal. You can make an offer and then withdraw if they try to negotiate further and you're not comfortable with increasing, you can just say no.

If you don't want to show AIP, just ask your mortgage adviser to drop the estate agent an email (once your offer is accepted, which hopefully it will be!)

This is normal, but be careful how you go about it. How hard you push back may depend on how much you want the house.

It is normal to ask for some financial information to confirm you are good for the money and not a timewaster. There are lots of them about.

In my opinion, it would be appropriate to get an acceptance of the offer before you start handing out financial information. But be prepared to provide everything really quickly if you are accepted (as they are unlikely to wait for you if they need to negotiate with another potential buyer). Personally, I have provided financial information before acceptance, and I regretted it.

In terms of lending, put them in touch with your mortgage broker to confirm that you can borrow what you have offered, rather than sending them the AIP.

In terms of proof of funds, show them the deposit only, and nothing else.

That is done by your solicitor not by the estate agent (who works for the vendor remember).

It was the estate agent when I bought a property.

I read the following 'Since 10th January 2020 when the EU’s Fifth Money Laundering Directive became active, Estate Agents are required to obtain proof of funds from you when you submit an offer to buy a property.

Thank you all, that's been very helpful - seems much clearer now.

I mean the simplest solution is to move the ‘excess’ funds temporarily for the purpose of this, leaving the necessary balance, then putting the money back.

appreciate if it’s a restricted one where you have to give notice, this may not be so easy

I'm a cash buyer and always sent a bank statement with the offer.

They could see I had 20k more than the offer, never once tried to force me to up my offer except during best and final (and it always went to someone offering more not me so certainly not a scam based on my bank balance).