Ensure clients avoid extra solicitor fees

6 February 2012 | By Rob McCoy, product and communications manager, PMS

It cannot be said that this comes as a surprise. Last year we predicted some lenders would cut back on their panels to reduce costs. Indeed, we believe this is the beginning of a chain reaction among other lenders.

The Bold Group, a national network of high street law firms, has been vocal about this news, noting that it has seen no single announcement stir up so much furore among its members since the group began business.

Like many others, the group claims the move is anti-competitive, giving consumers restricted choice when it comes to selecting their conveyancer.

But this is not the case. Consumers can still pick a conveyancer of their choice, perhaps one that is local to them.

However, in doing so they must take on the additional expense of the bank’s legal bills which could add around £300 to £400 to their overall costs.

For an adviser it is vital to recommend a reputable conveyancer to clients so that everything is in place when the lender is approached.

But this announcement makes it important for advisers to recommend firms that are on lenders’ panels so that clients are safe in the knowledge that they won’t incur any additional costs.

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