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

The Mortgage Works cuts buy-to-let rates for a second time in a week

The Mortgage Works will reduce rates by up to 0.20% across parts of its...

Clydesdale Bank trims selected residential and buy-to-let fixed rates

Clydesdale Bank has confirmed a series of rate reductions across parts of its residential...

Millions of young adults move back home to save for first property

More than 12 million people aged between 18 and 40 have lived with family...

Gatehouse Bank partnership aims to ease UK property finance for overseas buyers

Gatehouse Bank has partnered with financial technology firm Algbra in a move designed to...

ClearScore acquires Acre to accelerate mortgage ambitions

The ClearScore Group has completed the acquisition of Acre Platforms Ltd, a London-based technology...

Latest publication

Other news

The Mortgage Works cuts buy-to-let rates for a second time in a week

The Mortgage Works will reduce rates by up to 0.20% across parts of its...

Clydesdale Bank trims selected residential and buy-to-let fixed rates

Clydesdale Bank has confirmed a series of rate reductions across parts of its residential...

Millions of young adults move back home to save for first property

More than 12 million people aged between 18 and 40 have lived with family...