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

Bruton Knowles launches land referencing application after six-figure investment

Bruton Knowles has launched a land referencing application designed to reduce the time required...

World Cup, heatwaves and politics cool housing market

Political uncertainty, higher mortgage rates and a summer dominated by holidays, heatwaves and the...

Second charge mortgage lending volumes dip for first time in more than a year

New business volumes in the second charge mortgage market fell by 1% in May,...

Building Societies Association signs Mortgage Industry Mental Health Charter

The Building Societies Association has become the latest organisation to sign the Mortgage Industry...

Sprive urges first-time buyers to plan ahead as Leeds launches 2% deposit mortgage

Sprive has welcomed Leeds Building Society's new 98% loan-to-value mortgage but says borrowers should...

Latest publication

Other news

Bruton Knowles launches land referencing application after six-figure investment

Bruton Knowles has launched a land referencing application designed to reduce the time required...

Why post-contract variation is becoming the mortgage market’s next battleground

For much of the past decade, mortgage technology investment has focused on origination and...

World Cup, heatwaves and politics cool housing market

Political uncertainty, higher mortgage rates and a summer dominated by holidays, heatwaves and the...