Mortgage hidden costs

I have been contacted by a company called Lowcost Legal Ltd saying that I may be entitled to some compensation from my mortgage as some companies have been adding in hidden costs.  My mortgage was with Santander but I can't find any details of these hidden costs.  Does anyone know anything about this or is Lowcost Legal a scam?

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  • MorningcoffeeIV
    MorningcoffeeIV Posts: 1,889
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    edited 3 November 2023 at 12:22PM
    There aren't any hidden costs. 

    Save your time and money and block them.

    Remember what happened to you in 2010...

    https://forums.moneysavingexpert.com/discussion/comment/38974160#Comment_38974160
  • DullGreyGuy
    DullGreyGuy Posts: 9,119
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    It will be like any other of these speculative "class action" outfits... you sign a conditional funding agreement (aka no win, no fee) and so as long as you stick with them and do what they ask it doesn't cost you anything but they take a slice of anything you do get back (if you get nothing back then they get nothing from you). The danger comes where you get bored of the process after 9 months and want to withdraw and therefore are presented with their bill. 
  • dunstonh
    dunstonh Posts: 115,663
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    My mortgage was with Santander but I can't find any details of these hidden costs.  
    There isn't any. 

     Does anyone know anything about this or is Lowcost Legal a scam?
    I don't know anything about this company, so my response is generic about other companies that tried this.  They were scams or try-it-ons that left the person out of pocket.       The most common one was telling you that you were owed money due to hidden fees or incorrect interest rates or variations of that.   They said they could carry out a review free of charge.   Then sometime later they would come back saying you have a case and could be owed £tens of thousands but to proceed the solicitor would need to be paid for their work.    Usually asking you for a fee up front (where you kiss goodbye to your money never to hear again).

    Mortgage lending now falls under the consumer credit act and is highly regulated.  Fees are not hidden.  They cannot be.  Just look at your mortgage statements each year and you can clearly see every transaction listed.   You cannot hide a fee.





    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • born_again
    born_again Posts: 13,600
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    Or they want you to take out a insurance policy to indemnify yourself against any costs.
    Life in the slow lane
  • DullGreyGuy
    DullGreyGuy Posts: 9,119
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    Or they want you to take out a insurance policy to indemnify yourself against any costs.
    ATE insurance is normally self insuring... ie if you lose the policy covers its own premiums and if you win its part of the disbursements you have to reimburse if not covered by the other side. Again the problem comes when you want to withdraw before the conclusion of the claim as you then do pickup fees and costs. 
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