A Rise in Legal Fees at Abbey

The Abbey National bank has released information detailing a cut of 7,000 solicitors from its conveyancing panel. This cut will mainly impact local, small law firms who have completed low levels of work for the Abbey over the past year. The bank explained the move was necessary as these solicitors had not been completing enough work for them and therefore services will no longer be required.

The impact of this move will be felt by the firms who may lose a substantial amount of income as a result of being cut from the Abbey’s legal panel. The past year has seen a significant number of conveyancing solicitors being made redundant due to the poor state of the property market.

Homebuyers who are considering taking a mortgage out with Abbey will also be directly impacted by the move, potentially adding extra time and money to what should be a fast house sale. As the bank has cut such a significant number of its solicitors, any homebuyers wishing to use their own solicitors for the borrowing side of a mortgage agreement must also pay for the lenders side. Previously, Abbey’s solicitors have acted on behalf of the lender and also the buyer, this means that the bank’s legal fees during the mortgage process were paid for.

The solicitors acting on behalf of the lender must complete several criteria during the process including two main aspects of the mortgage lending process:

• Ensure the mortgage money is transferred to the seller.
• Registering the mortgage with the Land Registry.

Homebuyers will have to make the choice between using one of Abbey’s solicitors for the buying process or using their own solicitor but footing the bill for Abbey’s fees as well as their own. Essentially, this means homebuyers will be forced to choose between having the freedom to choose their own solicitor but pay extra charges to cover Abbey’s costs, or having their solicitor chosen for them by Abbey. The decision will increase the cost of home buying for many people who wish to use their own solicitor during the process.

As the expense of buying a home and meeting mortgage criteria is already problematic, people may consider alternative forms of equity release. Swift Capital offer a variety of services tailored to your requirements, whether you are keen to make a quick property sale or would like to sell and stay in your home, Swift Capital can offer a service to meet your needs.