Why do legal costs have to be shown in a KFI anyway?

From SM Foster

After issuing several KFIs in the past two weeks and receiving a mortgage offer from Halifax, could someone please explain how it estimates legal costs to be £148.05 on a £130,000 property to be purchased? The figure is closer to £2,000 – a discrepancy of more than £1,850. Why does this figure need to be in the KFI anyway? I suppose it is the broker who will be left to answer the questions regarding this as it is brokers who supply the lender’s KFI.

Is everyone not tired of this industry, with regulations brought in by people who have never done the job and who are penalising the public by passing on costs? Or is it all part of a big plan so that everyone has to go into a branch of a high street lender. Is that why the big boys are not questioning anything thrown at us by the FSA?

SM Foster
Partner
The Mortgage Shoppe
Hull
By email