C
Chord of Souls
Guest
It seems to me that both parties to this little spat have some merit in their arguments. To use the example Sarah gave, a mortgage of €250,000 would generate a fee to REA of €3,623.95 including VAT. This includes the legal fee. If the lender recommended by REA is paying them 1% commission, the commission refund will be €2,500.00 so the fee will be reduced to €1,123.95. Effectively this means that you're getting a solicitor for a fee of €1,123 including VAT or a fee of around €929 ex VAT. Not bad at all, but not unbeatable, if you shop around for a solicitor.
In this example, if it turns out that the most suitable lender is one that doesn't pay REA 1% commission, the refund is lower so the fee is effectively higher, and you'd be better off sourcing your own solicitor.
On the other hand, if the mortgage is €300,000 and the lender pays REA 1%, you get a refund of €3,000, meaning the net fee is €623.95 including VAT for your solicitor, or €515.66 ex VAT. This is excellent value, as long as the solicitor is good - you have to use the REA panel solicitor.
You also get REA's advice effectively for free, but you can get that from any good mortgage broker. I've never used REA's services personally but the feedback from happy customers here on Askaboutmoney.com suggests that they're good at their job. I've read many of Sarah Wellband's posts here also and can only conclude that she is a very knowledgeable broker, whose advice would benefit all but the most educated consumer.
I have no connection with REA.
In this example, if it turns out that the most suitable lender is one that doesn't pay REA 1% commission, the refund is lower so the fee is effectively higher, and you'd be better off sourcing your own solicitor.
On the other hand, if the mortgage is €300,000 and the lender pays REA 1%, you get a refund of €3,000, meaning the net fee is €623.95 including VAT for your solicitor, or €515.66 ex VAT. This is excellent value, as long as the solicitor is good - you have to use the REA panel solicitor.
You also get REA's advice effectively for free, but you can get that from any good mortgage broker. I've never used REA's services personally but the feedback from happy customers here on Askaboutmoney.com suggests that they're good at their job. I've read many of Sarah Wellband's posts here also and can only conclude that she is a very knowledgeable broker, whose advice would benefit all but the most educated consumer.
I have no connection with REA.