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Free Legal Package Vs. Paid Legal Package – Which package should I take?

Yes, a remortgage is a legal transaction and it does involve a solicitor.

As the property is being transferred from lender to another, the new lender must know if there any issues with their charge on the property.  They need to make sure that the previous lender is paid back, that the right amount is asked for and they will to do their own checks on the title of the property and their own charge has to be registered by the Land Registry.

As the competition heats up between lenders for remortgage business, many lenders now offer a free-legal package allowing customers to save on the normal legal fee’s.

However, as free-legals become increasingly popular, levels of service have dropped and unsurprisingly complaints have risen.

With this in mind, are free-legals still the best option?

The real issue here is that lenders have cut the fee’s they pay to solicitors, sometimes to as little as £20 case, therefore as business model this only works if the solicitor takes on work on a massive scale.  Invariably, this has a knock on effect to service levels and with staff that are not experienced solicitors, delays happen and mistakes occur.

At TMIB we do every thing we can to push through remortgages as effectively as we can, however we have little control over legal providers service.

That’s not to say that the free-legal process does not have its benefits.  If it is a simple remortgage with time to spare, then the process is fine.  However if it is a bit more complex then it might be best to choose another option.

Many lenders now offer a cash back option towards legal fee’s. This is usually between £200 to £500 and goes some way to covering the full legal cost.  This enables you to instruct your own solicitor, safe in the knowledge you are dealing with someone you can trust.

Alternatively, you can choose to use your won solicitor and pay the normal fee’s.  If time is against you or it is a slightly complex situation, then your won trusted legal people are probably the best option.

At TMIB we can help recommend a solicitor if you are unable to source your own.

A fee of up to £499 may be charged depending on individual circumstances.  A typical fee is £249 and is payable on completion.

The Mortgage & Insurance Bureau was created in 2003 in order to meet increasing demand from clients for advice on the ever complex mortgage market.

Our typical clients are busy, successful people who demand a high level of service. They want to deal with professional, knowledgeable staff, who are experts in their field.

Since our launch, The Mortgage & Insurance Bureau has established itself as one of the Region’s leading mortgage brokers and has won numerous industry awards for our service and performance.

Our staff have decades of experience in the mortgage industry and there are few challenges we cannot meet.

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