Buying A House

[Mammar]

It's many many moons since I bought a house so I’m out of date. I've just been told by a 1st time buyer that she had to provide the estate agent with visible proof of her savings in order to take the house she has offered on off the market. Is this a practice nowadays?

[fiction-factory]

It's understandable that they would want proof of savings and of a mortgage acceptance in principle. We were asked for it

[fiction-factory]

Also in my experience they won't usually take it off until surveys have been done and solicitors instructed as a sign of commitment

[Mammar]

Crikey! I've never come across that before. Well, you live and learn. In that case I shall stop worrying that it's not a form of unnecessary prying into her financial affairs.
Thank you for putting my mind at rest.

[TonyV]

No is normal nowadays to show you are a serious purchaser. I've heard of people viewing houses just for something to do on a Sunday morning., sad people out there.

[TonyV]

^^^^
Some sad

[Vicasso]

My ex, my three sons, and myself have all bought separately in recent years. We all had to provide savings information as proof of deposit, and I'm going back to 2012.

[woofgang]

we bought our first house in 78 and had to prove we had got an in principle mortgage offer and the deposit. Assurance from the building society that held our savings and was giving us the mortgage was enough. I can see why its done.

[Bigbad]

I completed a couple of months ago, and I had to show the agents a statement to prove I could afford it.

Whilst I understand the need for proof, I wasn’t happy having to show estate agents my financial details and don’t see why it can’t be confirmed by the buyers solicitor who you also have to show proof to. People wouldn’t appoint a solicitor and arrange a survey if they are not serious about proceeding.

TonyV @7.37. I had people like that when I was selling: 1 screaming kid who climbed on everything, twin toddlers that kept wandering off (it was me that had to keep them away from the stairs) and the parents opened every single drawer, cupboard and wardrobe. I gritted my teeth and kept my mouth shut because of their enthusiasm.
When I got the feedback from the agents I was told they would love to live there, but it was way too expensive for them!

[Buenchico]

Since the global financial crisis (2007-2008) the rules on mortgage lending have been tightened up considerably. For example, applicants for mortgages must now declare all their regular expenditure (including things like gym subscriptions) and lenders are obliged to take such expenditure into account when deciding whether the applicant is likely to be able to keep up with the repayments.

So it's not surprising if potential lenders (or those who might end up acting on behalf of such lenders, such as mortgage brokers or estate agents) demand proof that someone seeking to buy a house really has got the deposit that they claim to have available to them.

Further, I've never heard of an estate agent taking a property completely off the market until the sale has actually been completed. Estate agents love gazumping, because it increases their commission, so they're not likely to do anything to prevent it happening!

[Mammar]

Thanks all. I agree I can see the sense in it too but the last house I sold/bought was back in the 1990's so it's all new to me. She's rather nervous, it being her first purchase and she's in love with it so doesn't want it to fall through. Mind you, I know enough to tell her not to get too excited until both parties have signed on the dotted line as anything can happen.
Thanks for all your advice, much appreciated. If we all cross our fingers . . . .

[TonyV]

One of the last properties I sold was Basement flat in London WC1 postcode and within walking distance to British Medical Association (BMA) had a small paved garden. I just did one viewing day for all prospective buyers sold within a week for asking price.

[TonyV]

Mammar buyer is king in buying property at the moment if you have £notes or mortgage approved in principle. I would expect sign to go up "sold subject to contact"

[Bigbad]

It’s not just people who are taking out a mortgage that have to show proof to estate agents, Buenchico. So do cash buyers.