Conveyancing costs - YBS raking in referral fees

ianianian_2

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?

alchemist.1

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_2

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

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.

ianianian_2

Surely its wrong though. Shouldn't they have to declare this in their mandatory fees upfront?

amnblog

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.