Nationwide has decided to withdraw the free legals option for customers remortgaging with the building society.
From today (13 July) the nation’s biggest building society has ditched free legals after the service came under fire from a broker back in May who claimed their client may require compensation after their fees-free remortgage through Nationwide was delayed by more than a month, leaving them paying the standard variable rate for longer than expected.
At the same time as ditching free legals the lender has increased the cashback alternative from £250 to £500.
A spokesman for Nationwide said: “This is to enable customers to have greater flexibility to choose their own conveyancer and ensure that the majority of customers will have their legal costs covered.”
Back in May Nationwide’s conveyancer Breezeplus revealed it was addressing problems that have led to delays of weeks or months on remortgage processing times.
The legal firm was criticised by a Nick Green, broker at Coventry-based Alternative Estates and Financial Services, who said he had three remortgage cases that had been delayed as a result of issues with Nationwide using Breezeplus for free legals.
Mr Green said: "One had the offer issued in March, they chased and chased, and when I chased it I was told they were aware of the issues but it would be three days for a call back.
"All they need is the redemption statement. The current lender insists they haven’t had the request, but Breezeplus can’t confirm as you can’t get through.
"It has been nearly six weeks since the offer and clients are paying the higher standard variable rate, which they will probably want compensating on from someone, as the delays are avoidable."
Mr Green added that he did not blame the lender, but criticised Breezeplus for “taking on the business when they can’t cope with it”.
Speaking back in May, Brendan O’Brien, chief executive of Breezeplus, said he could not comment on individual cases but sought to reassure brokers that the problems were being addressed.
emma.hughes@ft.com
