Question re: Abbey 10 year Fixed Rate Mortgage - legal fees?

Susan657

Hi!

I am interested in this mortgage from Abbey, as I want to fix for 10 years.

I spoke to someone at Abbey over the phone today, who took some details from me and is going to get someone to call me back with a view to arranging it (next week). The girl on the phone told me that as well as the setup fee of £995.00 there will be a valuation fee (which I was aware of), and also legal fees.

I asked if these legal fees were the ones that I pay my solicitor for ie. conveyancing and she said no, it is a payment to Abbeys legal team - she didn't know how much this would cost but thought - ? a couple of hundred pounds. She couldn't tell me what this was for.

Can I ask if anyone has recently purchased this mortgage and if so how much were the legal fees and is this standard practice?

If this mortgage + fees is going to cost me about £1600, is this overpriced? I take it I am paying through the nose as it is a long term fixed rate? (This is my first mortgage )

Many thanks!!
Sue

Hippychick

We arranged our mortgage with abbey last night and was advised of the lenders legal fee of approx £150.00 this is paid to the solicitor for acting on behalf of the lender, I wasn't informed that we would have to pay abbey anything...

Susan657

Hi Hippychick! Thanks for the reply!

Perhaps that is what they are talking about then. So can I ask, is that approx £150 paid to Abbey, as opposed to your own independent solicitor whom you are paying seperate fees for searches, etc.

Thanks,
Sue

jenniferfluff29

Hi Susan657

I am getting a 10 year fix with britannia. If it works the same, the legal fees are only an example if you were wanting to use abbey's solicitor ( ie if you were remortgaging your existing house and therefore didn't want to instruct a separate solicitor to undertake the legal work then you would pay Abbey the legal fees and they would use their selected solicitor at the legal fees quoted price). If you are buying then you will pay the legal fees to your solicitor only and you will only pay the fees that the solicitor originally quoted you for the conveyancing of your house.

eg I am paying Britannia a £550 arrangement and booking fee only. I don't need to pay them any valuation fees as they are accepting the home report and I don't need to pay legal fees as my own solicitor will be handling the legal side of things and I have already obtained a quote for all this work from him.

Hope this helps.

Good luck
Fluff

Susan657

Hi Fluff,

That's great, thanks for your detailed explanation.

Could I also ask you, when you say that Britannia are accepting the home report, so you don't need a seperate valuation, is this report part of the HIPS pack or something different?

Many thanks!!
Sue

jenniferfluff29

Hi Sue

I am in Scotland. A seller now has to have a home report when their home is marketed. This is similar to a type 2 survey but also includes a questionnaire that the seller completes, home energy report and another section that I can't remember. I am not sure if this is the same as a HIPS. If the HIPS includes a valuation which was carried out by one of the big surveyors then the BS may accept it and therefore no need for another valuation. Worth checking.

Hope this helps

Fluff