Buying my first Flat – Concerned About Mortgage Adviser & Solicitor Costs

Pa7ch

I’m looking to buy a flat in Gloucester for £117,500 with a shared freehold. I’ve found a property I like and can afford, and I’m now navigating the mortgage and legal side of things.

I’ve been advised by a mortgage adviser (working for Nationwide) to go with a tracker mortgage, and then switch to a fixed rate once I receive an inheritance of £40,000 (expected mid/late this year). I plan to use this to pay down the mortgage quickly.

However, I’ve been told the mortgage adviser will charge:

• £700 for "lifetime support" (a one-off fee)
• £100 admin fee when I switch mortgages later

The solicitor (based in Cardiff) has estimated £2,500 in fees, which is less than that of the two local solicitors I've tried. My advice says if I use them, he will cover any issues if the sale falls through

I’ve been told my friends that:

• The £700 fee is not standard and may be a broker add-on.
• Some solicitors offer a "no sale, no fee" deal, which protects me if the sale fails.
• Going direct to Nationwide might avoid the £700 charge.

I’m not sure if I should:

• Stick with the adviser and pay the £700
• Go directly to Nationwide (or another lender)
• Use a local solicitor with a "no sale, no fee" deal

I’m trying to avoid being ripped off, but also want to stay safe and make the best financial decision.

My questions:

1. Is the £700 "lifetime support" fee standard or a rip-off?
2. Should I go directly to Nationwide, or is the broker route better?
3. Is the £2,500 solicitor fee reasonable, or should I look for a local one?
4. Are there tracker mortgages with no early repayment charges on overpayments?
5. The main reason I'm tempted to pay the advice fee he says for the £100 he will handle switching mortgages for me, meaning I can start on a tracker and then switch to a fixed once I've paid off £40000

I’d appreciate any advice, especially from people who are more aware of standard fees

Thanks in advance.

Myci85

If you're a straight forward case, there are brokers out there who don't charge you, they get their commission from the lenders. If you've any tricky circumstances, then a fee paying broker may make more sense. But £700 does sound a lot unless you've things like a poor credit history etc.

Solicitor wise, if you read a few threads on here you'll quickly see that it can be worth paying a bit more for a decent solicitor.

Myci85

Also, make sure any quotes you are getting are taking into account that it is a leasehold property, as that usually adds more to the legal fees, and isn't always included in the quotes unless you specify.

Pa7ch

https://forums.moneysavingexpert.com/discussion/comment/81885690#Comment_81885690

Thanks, my credit is good, I've never had any issues on that front.

Albermarle

 once I receive an inheritance of 

£40,000

 (expected mid/late this year). I plan to use this to pay down the mortgage quickly.

Are you sure you will want to use all of it to pay down the mortgage? Do you have an adequate level of savings for example? What about spending some of it on your new flat ( there might be unexpected expenses as well as expected ones). Or even investing some for the future?

born_again

I’ve been advised by a mortgage adviser (working for Nationwide) 

Did they check other lenders? As a broker should be independent, or you might as well just go direct to lender.

Brie

Is the mortgage adviser suggesting a Nationwide product, suggesting they aren't give any whole of the market advice?

Has any recommendation for the adviser or any solicitors come from the estate agent? Usually best to get an independent recommendation, i.e. friends, family etc.

silvercar

if you are switching mortgages with the same lender later in the year, why would you need to go through the broker?

What on earth is a lifetime fee? Sounds like a dodgy charge to keep you tied to them, particularly dodgy if they are charging admin fees on top.

Emmia

Have you plugged your details (property value, deposit, income) into a price comparison site? This will give you a good guide on the rates, term lengths and costs - you may not need a broker at all, you can go direct to the bank.

I'd probably also opt for a fix for your first mortgage unless your mortgage payment vs salary means you can absorb/afford movement (increases) as you'll undoubtedly discover unexpected costs when you actually buy your place and move in. You can then pay down the mortgage at the end of your first fix, or use your inheritance to make overpayments (if your mortgage allows this)

Bigphil1474

It's typical for any mortgage deal to limit overpayments to 10% of the outstanding balance at the start of each year, for the duration of the deal, so you may have an early repayment charge if you try and switch from a tracker to a fixed deal. You could go for a 1 year fix if available, so you aren't waiting any longer than necessary. I don't see the need for a lifetime broker fee unless you are planning on moving house regularly.

Bear in mind that any inheritance may take a lot longer to receive than expected. I've unfortunately/fortunately received 2 inheritances in that last 4 years, and one took over a year to pay out after death, and the other came almost 2 years after the death (albeit a long lost relative and the involvement of heir hunters).

EssexHebridean

First Direct do fixes without a limit on the overpayments made - or at least, they did in 2023 when we took our mortgage with them - it was one of the key reasons we chose them.