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Free legals

Journalist: Anna Sagar, Mortgage Solutions / Specialist Lending Solutions

ended 17. August 2022

Looking to speak to mortgage brokers about free legals in the mortgage process. 

  • Have more clients been asking to go down this route to save money?
  • What are the benefits of free legals?
  • What are the disadvantages? 
  • What would your advice be to customers who say they want to take the free legal option?

 

6 responses from the Newspage community

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Rob Peters
Principal at Simple Fast Mortgage
Free legals are the 'sausage factory' of conveyancing designed to entice unwitting borrowers to use that mortgage provider. Usually free legals are only available to those remortgaging an existing property which tends to be less complex than a new property purchase. However, due to the 'stack 'em high, sell 'em cheap' approach there is still plenty of scope for borrowers to face poor communication and lengthy delays caused by under-staffed, and over-worked firms. Thankfully most mortgage lenders offering free legals, also offer a cash back alterative, and cash back wins hands down every time. Cash back enables the borrower (and adviser) to keep control of the legal process by selecting their own firm. The borrower effectively pays the legal firm directly which results in a better level of service provided without them being out of pocket
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Imran Hussain
Director at Harmony Financial Services
Have more clients been asking to go down this route to save money? The majority of my clients would rather deal with the bride of Chuckie than use free legal due to usually the incompetence and sausage factory operations that are in place, the benefit was supposed to be no cost to the client but in the end it's usually cheaper for the client to use a fixed price remortgage service than free legal as it avoids gaining any grey hairs and less emotional stress anyone considering free legal must go in with their eyes wide open knowing it's going to be a painful experience.
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Paul Neal
Mortgages & Equity Release Advisor at First Choice Financial Services
Shudders... Free Legals arent something brokers want to hear. Yes its going to save you in the reigon of £4-500, however if you want to do this expect process to be slow and frustrating! A better option is to find a better solcittor and look for a deal with some cashback, you will thank me later!
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Ryan Joyce
Director at Key Mortgages
I tell my clients to avoid if there is another option such as a deal with cashback. Yes the client may have to bridge the cost between the cashback and the cost of their own solicitor, but the cost of choosing 'free' legals' is time, stress, headache's and more! It is not worth it. They act only for the lender and god forbid you have anything complicated for them to deal with, it will take an age to get done.
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Jonathan Burridge
Founding Adviser at We Are Money
We recommend against using free legals in nearly every instance. The price demanded by lenders to cover the cost is so low that conveyancers have to cut every corner they can - generally it means service to the borrower is the last consideration. Even fixed price conveyancers who offer a service close to the cashback alternative often given by lenders struggle to spin the plates of a viable business solution, quality to their customers and a sound conveyance. It is easy to bash conveyancers because of frustrations experienced but we have been responsible for the commodification of conveyancing and therefore we are also to blame for the experience our customers experience.
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Rhys Schofield
Brand Director at Peak Mortgages and Protection
That saving of a few hundred pounds can look tempting until the sausage factory outfit doing the work for £50-100 drops the ball and you spend a few months on SVR. I know someone in the industry who ended stuck on Halifax's SVR for 4 months in this exact scenario and it's simply not worth the risk. Our advice is simple, if it's on offer, always take the cashback option and appoint someone good to do the conveyancing instead. Your stress levels as well as ours are worth more than the marginal additional cost.