CML slams Scottish move on separate representation

Published on

Council of Mortgage Lenders

The Council of Mortgage Lenders (CML) has criticised the announcement by the Law Society of Scotland to move to compulsory separate representation for lenders and buyers in all transactions.

At the Law Society of Scotland’s annual general meeting today, 58 solicitors voted to remove the current exception to Law Society conflict of interest rules, which permits a single solicitor to carry out work for a client wishing to buy a property and their mortgage lender. There were 27 against and three abstentions. Proxy votes were not cast.

The Law Society will now bring forward new practice rules for its members to vote on at a special general meeting (SGM) in September. If voted through at the SGM and subject to approval by the Lord President, solicitors will no longer be able to act for both buyer and lender.

CML director general Paul Smee said: “It is disappointing that a measure which is so blatantly against consumer interests and will impose added costs and added scope for confusion and delay has been voted through, with not even the pretence of wider consultation.

“At a time when housing and mortgage markets are still recovering, this is a protectionist measure with little regard for the interests of consumers.”

COMMENT ON MORTGAGE SOUP

We want to hear from you!
Leave a comment and get the conversation started.
You need to register to post, so please login or sign up below.

1 COMMENT

  1. “……. this is a protectionist measure with little regard for the interests of consumers.”

    What else would anybody ever expect from lawyers?

Comments are closed.

Latest articles

Affordability issues likely to intensify until 2027, lenders warn

Mortgage affordability is expected to become a more pressing issue by 2027, according to...

Rising house prices ‘pay for Christmas’ for most homeowners

Most UK homeowners have seen their property rise in value by more than the...

IMLA backs FCA roadmap on mortgage rule review

The Intermediary Mortgage Lenders Association (IMLA) has described the Financial Conduct Authority’s (FCA’s) Feedback...

Borrowers moved early as rate cut expectations built, Twenty7tec data shows

Mortgage search activity reached its highest level of the month on 9 December, nine...

AdviceTech ‘giants’ join AdviserSoftware.com AI comparison service

Three of the UK’s most widely used adviser technology systems – Dynamic Planner, FE...

Latest publication

Other news

2026 forecasts: St. James’s Place

Four senior figures at St. James’s Place outline themes, opportunities and concerns for 2026. JUSTIN...

2026 forecasts: Atom bank

Chris Storey, chief commercial officer at Atom bank, provides his thoughts on the residential...

“It’s Christmas time, there’s no need not to check your supplier list…”

With the Christmas holidays upon us, it’s fair to say that business issues might...