Brokers have called out both L&Q and Persimmon over conditional selling practices with one borrower advised to use recommended broker and another not allowed to use a broker who charges fees.
The first case against L&Q was identified by Beechwood Mortgages managing director, Adrian Collins, who posted on LinkedIn about his experience.
In the post, Collins stated that one of his advisers lost a client that was “keen to use us” but decided against this in fear of losing money.
Collins recalled that the client had said: "I'm sorry, but L&Q advised us that if we use a different broker from their recommended ones, we would lose the purchase incentives given at the reservation."
He described this as “frustrating” and stated this was indicative of developers “piling on the stress” by pressuring buyers to use certain mortgage brokers.
Repossession Rescue Network founder, Patricia McGirr, described the case as “nothing short of blackmail”.
“Client choice and impartiality are key to ensuring borrowers are protected and properly advised,” she explained.
“This is particularly important when it comes to making such a huge financial commitment that home ownership entails. Forcing borrowers to use a specific broker flies in the face of good customer care.”
Collins said this was not an isolated incident as “a few estate agents have been doing this for years and, unfortunately, they still do”.
“Buyers should never feel pushed into decisions that may not be in their best interest. They deserve the freedom to choose without any undue influence,” Collins added.
A similar sentiment was expressed by The Mortgage Stop director, Rohit Kohil, who pointed out this represented part of a growing trend for brokers as “we continue to see more examples of this”.
Kohil argued that, to combat this, developers should be “under the same obligations as estate agents”, if not even more so given they have direct control over the price they charge.
“The consumer never wins when conditional sales are made,” he added.
“These are exploitative and unfair in their nature and make a mockery of the principle of ensuring good customer outcomes.”
In response, L&Q executive group director for development and sales, Vicky Savage, said: “We encourage anyone thinking of buying a home to seek independent advice to ensure they are making a purchase which is right for them.
“We do not place restrictions on buyers instructing a solicitor or mortgage broker of their choice in the vast majority of transactions.
“The only exception to this is that we sometimes run time-limited offers with financial incentives.
“When we do this, we require that buyers choose a solicitor and mortgage broker from a panel of approved members.
“We trust these firms to represent customers' interests and handle the deadlines linked to these offers.
“This is because they have proven expertise in navigating our processes, procedures and contracts, and knowledge of our developments.
