Online conveyancing distributor Conveyancing Alliance Ltd has launched a new limited offer special remortgage deal – the ‘Rapid Remortgage’ – at a price designed primarily as an alternative to free legals.
The price that clients will pay is £120+VAT although advisers can choose to add their own referral fee.
Advisers, for example, can offer the ‘Rapid Remortgage’ product to clients at a cost of £199.75 including VAT and receive a £50 referral fee. Where lenders are providing legal cashback offers of £200 this would then cover the full amount while if the cashback is more, or if there are no free legals option, the adviser can earn up to £200.
The ‘Rapid Remortgage’ deal offers a seven-day completion period with regular updates and control for the adviser, plus the solicitors act for the clients, which is not the case with ‘free legal’ offerings where the solicitor is only acting on behalf the lender. Conveyancing Alliance believe that the majority of remortgages are completed with ‘free legals’ and have questioned whether this treats customers fairly given the poor value and the lack of client representation.
The product will be available for an initial limited period of three months although Conveyancing Alliance may continue to offer this product if business levels allow.
The deal follows the publication of Conveyancing Alliance figures for Q1 2010 which revealed a slight increase in remortgage instructions on the previous quarter although overall completions stayed the same. Whilst remortgage activity remains subdued, the expectation is that it will begin to show a steady increase throughout the next few months.
Harpal Singh, managing director of Conveyancing Alliance Ltd, said: “This ‘Rapid Remortgage is a significant development for Conveyancing Alliance and the intermediary market