Not told about referral fee for solicitor!!

Johnjones7656

I'm a first time buyer and because of the way I'm paid I've had to use a mortgage advisor (which obviously comes with a fee!). When it came to choosing a solicitor the advisor said they could help and sent me a recommendation. It turned out to be the same firm a friend had previously used so I thought it was a good choice! However have just found out I have to pay in excess of £400 for that referral!!!! Surely the mortgage advisor ahouldve told me that beforehand?!?!

I haven't filled out and sent back any of the paperwork to the solicitor yet so can still find another solicitor but I'm annoyed!!!

dunstonh

However have just found out I have to pay in excess of £400 for that referral!!!! Surely the mortgage advisor ahouldve told me that beforehand?!?!

A lot of brokers will have relationships with conveyancers. The conveyancer will often pay a referral fee to the broker. However, you do not pay that fee. It is factored into the overall charges. Not in addition to them.

Johnjones7656

My friend used the same solicitor and their fees are pretty much £400 less than mine! So surely it is me paying that fee to the mortgage broker?

ACG

Im not sure what Dunston says is necessarily correct, there are some solicitors who do bump their fee up by the same amount of the referral fee.

Personally I do not get a referral fee for that exact reason and I would prefer people to use my solicitor as I know she is good.

Call the solicitor up and ask for a quote for a purchase of the same amount and see what happens. You will know for sure then if you are paying their fee or not. £400 is a huge fee! I tend to see fees of £100-250 max.

If it turns out you are paying £400, find a new solicitor or ask them to waive their fee. It will take them more time to speak to the lender and change the solicitor (and still eanr nothing) than it would for them to waive their fee.

TrickyDicky101

Johnjones7656 wrote: »

My friend used the same solicitor and their fees are pretty much £400 less than mine! So surely it is me paying that fee to the mortgage broker?

And what are other solicitors quoting you for the work? That's what you want to compare it to - not necessarily what your friend paid.

Johnjones7656

Well, being all naive and stuff we didn't check any other solicitors!! As soon as my friend said they were who they went with and said they were good I presumed they'd be ok!
It just seems odd that our 'fees' are pretty much £400+ more than theirs especially when our property price is lower!

Thrugelmir

Johnjones7656 wrote: »

It just seems odd that our 'fees' are pretty much £400+ more than theirs especially when our property price is lower!

Are you comparing like for like.

Johnjones7656

Not sure what you mean 'like for like'?

Thrugelmir

Johnjones7656 wrote: »

Not sure what you mean 'like for like'?

Item for item.

Johnjones7656

A few things are different and a few things are the same. Nothing is as vastly different as the £400 difference in legal fees though!!

The letter from the solicitors says we pay it but it's included in the original quote from them. How was I to know £750 isn't normal for legal fees?!?