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Solicitors say fee-free offers do not serve the consumer.
Fri 16th Oct 09 - 13:59
A conveyancer has criticized lenders who offer free legals, which he said, can leave consumers without important legal advice when buying a house.
Eddie Goldsmith, senior partner at Goldsmith Williams said brokers should advise customers, the cash-back option is the best option for consumers who can then use their own lawyers.
Consumers and brokers need to check the fine print in these free legal advice deals said Goldsmith, because a cash-back option is, usually on offer and some of the legal tenders do not provide protection for consumers, only for the lender.
Fee-free deals only safeguarding the interests of the lender, but shockingly, they do not offer legal assurances for the borrower. If something goes wrong with the transaction, borrowers may find themselves left in the cold.
Goldsmith said he had received "several" cases where customer had problems that would have easily been avoided if clients had used their own lawyers who would be acting in their best interest.
Goldsmith cites another case where the execution was delayed and the customer was forced to seek interim financing for the transition period upto completion.
A mortgage search revealed yesterday that eight high street lenders offer free-free mortgages.
Nationwide Building Society has launched a new series of cut-price deals today, including two offer for first time buyers, with loans up to 70 percent LTV including discounted booking fees and free legals.
A spokesman said the Nationwide Mutual offers home buyers a very competitive and high quality services.
"We are actively monitoring the service standards of our lawyers every month to ensure customers receive an efficient service," added she added.
"As a lawyer working for the customer, the customer is their client and as such, the lawyer has a duty to the client instructions and to act in their own interest at all times.
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Source: North Mortgages Ltd - 16th October, 2009
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