Mortgage firms are 'misleading house buyers'

Trusted article source icon
Monday, June 13, 2011
Profile image for Leicester Mercury

Leicester Mercury

House buyers are being misled by mortgage lenders about conveyancing, a leading lawyer has claimed.

Jim Abbott, senior partner at Mander Cruickshank, of Coalville, has accused mortgage lenders of incorrectly advising clients they cannot use their own solicitors.

Mr Abbott, whose firm also has an office in Hinckley, said the practice was unfairly affecting small solicitors and was leading to house buyers receiving an inferior service.

He said: "Local firms act for their clients on the basis of making sure every detail has been looked at correctly and the public need to know these firms are there to act purely on their behalf."

Mr Abbott's claim comes after Desmond Hudson, chief executive of the Law Society – the solicitors' professional body – said there was a huge volume of complaints about lenders incorrectly advising home buyers on who they could use.

The Law Society has singled out Santander and The Mortgage Works, part of Nationwide, as the worst offenders, but said the problem is widespread.

A Santander spokeswoman said: "Customers are always free to choose whatever solicitor they want to undertake their conveyancing transaction for them and in many cases the solicitor acting for the customer can also act for the bank.

"However, when acting for the bank, the solicitor also needs to be on the bank's approved panel of solicitors."

A Nationwide spokesman said: "The Mortgage Works and Nationwide recommend that borrowers use a solicitor from their panel.

"However, we recognise the individual's right to separate representation."

0
Tweet this article
Report

Your comments awaiting moderation

Be the first to comment

max 4000 characters