The service, in conjunction with LMS, is aimed at helping both buyers and sellers to avoid paying the fees when the purchase falls through, saving both parties a significant sum of money.
The proposition also allows clients to track the process through an online site and works alongside Nationwide Building Society’s Mortgage Application Tracking Service (MATS).
Larry Banda, head of mortgages at Nationwide, said: “This service aims to ease the stress of moving house and can save people both time and money. Unlike other providers our fee is fixed, so customers are not entering a postcode lottery. If the worst does happens and a house sale or purchase falls through then there are no conveyancing fees to pay.”
Legal fees can add a lot of money to the house-buying process, an issue most keenly felt by first-time buyers (FTBs).
With the average FTB paying £135,742 for their first home, according to the Office of the Deputy Prime Minister (ODPM), a failed completion would have cost them between £674.45 and £880.08 in legal fees from Nationwide before the service was introduced.
Andy Knee, managing director of LMS, said: “Buying a house can often be a complex and difficult time for a consumer and I truly believe that the service Nationwide is now offering its customers, with the help of LMS, will go a very long way in helping make it a stress-free experience.”
Tony Catt, an independent financial adviser, said: “It will give FTBs considerable reassurance that they won’t lose money which they can ill afford. However, nobody can really afford to throw money away so it is a nice idea for both the buyer and the seller. But we need to address the wider area of why purchases fall through in the first place.”
