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

Majority of first-time buyers now face higher mortgage payments than rent

More than half of first-time buyers moving from rented accommodation into homeownership are taking...

Foundation gains workplace accreditation after 93% staff approval

Specialist lender Foundation has secured Great Place To Work certification after 93% of its...

‘The Godfather’ joins Mortgage’s Got Talent judging panel

John ‘The Godfather’ Malone has been recruited as a judge for Mortgage’s Got Talent,...

Royal London introduces AI menopause support tool for staff

Royal London has launched an AI-powered tool designed to help employees and managers access...

Your First Home delays could stall first-time buyer market

Delays in launching the government's Your First Home scheme could cause first-time buyers to...

Latest publication

Other news

Majority of first-time buyers now face higher mortgage payments than rent

More than half of first-time buyers moving from rented accommodation into homeownership are taking...

Instamo and Fluxifi AI agree integration to simplify mortgage submissions

Mortgage advisers using Fluxifi AI will gain access to Instamo's FastSubmit technology through a...

Growth can hide a lot – until it stops

Since getting involved with Rotherham United Women I've realised football and business have quite...