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  • FIRST POST
    • ianianian
    • By ianianian 16th Sep 17, 6:21 PM
    • 226Posts
    • 49Thanks
    ianianian
    Conveyancing costs - YBS raking in referral fees
    • #1
    • 16th Sep 17, 6:21 PM
    Conveyancing costs - YBS raking in referral fees 16th Sep 17 at 6:21 PM
    I am in the process of remortgaging my house – from one provider to Yorkshire Building Society (YBS).

    YBS force you to use a solicitor from their preferred supplier list under the guise that they know the YBS processes. Costs are high compared to other solicitors.

    I had to oblige – at cost of £379 before fees. I've just received a letter from the solicitor stating (among other things) that £276 of these fees are paid to United Legal Services (ULS) as a referral fee. A large percentage of this will then no doubt go back to YBS who employ ULS to handle their conveyancing.

    Surely this can't be right/ fair? To a layman this sounds like almost 300% commission on top of a £100 service. Any thoughts?
    Last edited by ianianian; 16-09-2017 at 6:39 PM.
Page 1
    • alchemist.1
    • By alchemist.1 16th Sep 17, 7:08 PM
    • 851 Posts
    • 656 Thanks
    alchemist.1
    • #2
    • 16th Sep 17, 7:08 PM
    • #2
    • 16th Sep 17, 7:08 PM
    Think of it as an additional mortgage cost.

    These types of issues/fees should be considered when comparing mortgage rates. One of the ways of keeping headline interest rates low is receiving recommendation fees such as this.
    • ianianian
    • By ianianian 16th Sep 17, 7:43 PM
    • 226 Posts
    • 49 Thanks
    ianianian
    • #3
    • 16th Sep 17, 7:43 PM
    • #3
    • 16th Sep 17, 7:43 PM
    Yeah, I get that and have included it in my comparison, my point is rather £300 commission on a £100 fee, when you've forced people down that route seems like it shouldn't be allowed.
    • ACG
    • By ACG 16th Sep 17, 8:06 PM
    • 15,758 Posts
    • 8,056 Thanks
    ACG
    • #4
    • 16th Sep 17, 8:06 PM
    • #4
    • 16th Sep 17, 8:06 PM
    You have not been forced down any route.
    Vote with your feet and go elsewhere.

    Certain Estate agents do this sort of thing all day every day.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • ianianian
    • By ianianian 17th Sep 17, 1:37 PM
    • 226 Posts
    • 49 Thanks
    ianianian
    • #5
    • 17th Sep 17, 1:37 PM
    • #5
    • 17th Sep 17, 1:37 PM
    Surely its wrong though. Shouldn't they have to declare this in their mandatory fees upfront?
    • amnblog
    • By amnblog 17th Sep 17, 8:37 PM
    • 10,008 Posts
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    amnblog
    • #6
    • 17th Sep 17, 8:37 PM
    • #6
    • 17th Sep 17, 8:37 PM
    YBS don't employ ULS.

    ULS are a firm that generate work for solicitors and offer a legal introductory service throughout the industry for both Lenders and Brokers.

    YBS will probably be making some margin but that would simply form part of their overall offering. If you don't their terms, don't use them.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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