Solicitors Fees through Mortgage Broker

General Discussion

Dear All

WIth the ongoing furore over car finance commission and the FCA investigation, I am concerned about the solicitor fees being quoted for conveyencing by a mortgage lender, and the selection process through a mortgage broker.  

We are looking to mortgage a property we purchased for cash last year (usually classed as a re-mortgage).  The lender strictly limits the solicitors available to a 'approved' list, and my usual solicitor is not on it, nor is the solicitor we used for the conveyencing on the purchase of the property (they were also selected from a limited list).  This solicitor has quoted us £500 inc VAT for the legal fees on simple remortgage.  

Using the list provided by the lender, the broker provided a list of quotes, with the three cheapest being c£680, +36% more.  When I contacted one of the solicitors directly, they quoted me £540 (-20% less) with full knowledge of the name of the mortgage lender and my situation.  

- Why would the cost be so much higher through the lender/broker unless there is hidden commission?  

- Is this legal under restrictive trading regulations, competition law etc?  

- Is this "treating your customer fairly" following FCA rules? 

I would be interested in anyone's experience or knowledge of this practice.

thanks & regards

TT