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

Hodge signs Mortgage Industry Mental Health Charter

Hodge has signed the Mortgage Industry Mental Health Charter (MIMHC), committing the lender to...

Mortgage Charter support used by more than 300,000 borrowers since launch

More than 300,000 mortgage borrowers have reduced their monthly payments since the government’s Mortgage...

Mortgage debt hits record £1.73trn as high-LTV lending rises

The total value of outstanding UK residential mortgage lending reached a record level in...

Alps launches enhanced landlord protection product ahead of Renters’ Rights Act reforms

Alps has introduced an updated Landlord Legal Expenses and Rent Protection product designed to...

Paymentshield expands landlord insurance panel with addition of Arkel

Paymentshield has strengthened its Landlord Insurance panel with the appointment of MGA and underwriter...

Latest publication

Other news

Hodge signs Mortgage Industry Mental Health Charter

Hodge has signed the Mortgage Industry Mental Health Charter (MIMHC), committing the lender to...

Mortgage Charter support used by more than 300,000 borrowers since launch

More than 300,000 mortgage borrowers have reduced their monthly payments since the government’s Mortgage...

The protection gap that runs all the way up the ladder

The property ladder is usually talked about in terms of deposits, equity, and affordability...