Caroline Havers, conveyancing and remortgage specialist from Salans, outlines the impact this review will potentially have on mortgage industry:
“Salans welcomes the findings of the Clementi Review as a positive step towards creating dynamic legal businesses which are better able to meet the needs of all concerned. The proposals will not only benefit legal professionals and consumers but the lenders and intermediaries as well.
“Under Clementi’s proposals, organisations such as these will now be able to invest directly in legal practices. This will mean that a company can invest in the firm which provides the bulk of their legal services, such as conveyancing, and therefore have control over standards and working practices. In addition to this, Clementi confirmed that so called ‘Tesco Law‘ practices that contain legal as well as other services, such as financial advice and estate agents, will be considered as a possible business model in the future.
“The changes recommended by Clementi which will impact the mortgage industry, will mean that solicitors and barristers employed by large institutions will now be able to offer their services directly to consumers and other businesses. This practice could potentially see large lenders offering branded legal services.
“Both of these recommendations provide potential new revenue streams for the mortgage industry. The Department of Constitutional Affairs is now working on a White Paper on the proposals which is due out in the summer and we look forward to the positive impact these changes could bring.”
