Urgent Help Needed on Northern Rock Remortgage Fees!

mleonard79

Hi everyone

As you may have seen in my NR remortgage thread I have decided to take a fixed rate remortgage with NR at 5.29%. Sorry for repeating myself but as this is an urgent question I thought maybe starting a new thread would get quicker replies.

NR told me that I would end up after fees with £70 left over (£75 valuation application fee, £220 valuation admin fee, £160 for valuation itself, £200-300 legal fees and £25 insurance fee for not taking their buildings so £680-£780 all in and then £750 help with costs so I gain £70 or if legal fees are a little higher I at least get the mortgage pretty much fees free.) The advisor at NR told me it would be more expensive going through a broker but my local broker told me that's not true. Anyway I did the whole application process with him yesterday and he got a decision from NR instantly and it all went well. He said that the fees would come to £655 so I would have £70 left over which was pretty much the same as NR so I was pleased with that. He even dropped the papers we needed to sign off at the house last night.

Anyway while reading through the papers I looked at the fees and he added the £220 fee onto the mortgage which we'd discussed as I thought I'll just pay that off with the help with costs when I get it. The problem is the other fees say £500 solicitors and £155 valuation. I'm fine with the valuation fee but with a £500 solicitors fee that brings the total fees to £875 meaning I'm paying more than I thought. He was oviously not counting the £220 fee added to the mortgage when he told me the fees would come to £655! I know its a paltry amount in the whole scheme of remortgaging but it was a bit disappointing. From the NR illustration if they can do it for that then they clearly do it cheaper. I've phoned the broker and he says that the fees are correct but if I wanted to he could put it through NR's rapid remortgage service for £350 saving £150 but he's never used it before and says he's not sure about their guarantee to have it done in 4 weeks. He says it amounts to a free legals service from the bank but they can be slow. He also said I could phone any solicitors in Glasgow and wouldn't be able to get the legal work done for £200-£300 as the fees they have to pay out come to at least £295 just for sending away for title deeds etc. I know his solicitor is good - he even sent away for the title deeds straightaway yesterday. I'm hoping to get the mortgage pushed through as quickly as possible due to a loan which a kind lady at lombard has frozen for me for a few weeks but if I don't pay it in that time it'll be £200 more to settle it. However to pay over £200 more for remortgaging in order to do that negates the saving!!

Has anyone used the Rapid Remortgage Service and is it worth it? What do you guys think about the fees, what should I do? I could use the broker with his own solicitor at the higher fees, use the broker and go through rapid remortgage with NR or just go back to NR direct and do it through them??

I need to decide quickly as I'm taking the papers into the office this afternoon. Thanks a lot for any help.

Michelle

dwight-van-man

Hi Michelle,

The Rapid Remortgage scheme provides a four week turn around guarantee as long as you return all the paperwork when its requested and there is no additional work involved, eg adding or removing someone from the title. The likliehood is that NR would appoint a firm called Walker Laird who are on the RR panel specifically because they can and do work within this timescale. NR have just pulled the bulk of their RM business away from another solicitor because their service standard were starting to slip. Some lenders offer free legals and use conveyancers who can take up to eight weeks to complete, which is probably what is putting your broker off.

If you want to use the Rapid Remortgage service, you need to get him to instruct NR to instruct the solicitor asap as the instruction is normally generated automatically on receipt of the application so is already behind timescale.

Bit naughty of him instructing his own solicitor just because he hasn't used the RR sevice before.....

mleonard79

Hi Dwight,
Thanks for your helpful reply - I got it just as I was running out of time to decide and get the papers in! I've told the broker to go with the NR Rapid Remortgage Service and he's instructed NR and got that sorted this afternoon. I've also handed in the signed papers and the surveyor came this morning so that's the ball well and truly rolling now! I'm quite happy that it was just a misunderstanding with the broker as he's been great in every other way so far and did not try to dissuade me from going with the Rapid Remortgage Service. I think I should have asked more questions when we were discussing it yesterday cos he told me about the solicitors he usually uses and I said that would be fine but I think we'd got our wires crossed about the fees. I'll keep you up-to-date with what happens and we'll see how long it takes to complete. The broker's got all the paperwork, IDs etc he'll need so here's hoping it'll go smoothly. Once again thanks for all your advice and help as its been invaluable since you work for NR. I'm really grateful.

Kind Regards

Michelle

homer_j_3

Re sols... the brokers company could be getting a slice of the cash by using their solicitors and in turn your broker too.... I would ask for a cost comparison on the 2 and see which is cheaper. If the brokers route is then take that - if not - take yours

mleonard79

Hi Homer J,
Well the Rapid Remortgage costs £350 and the broker's solicitors cost £500 so I've gone with the NR's Rapid Remortgage. It definitely saves me money but just hope it ends up as rapid as it says! Thanks.

Michelle