Why you should choose cashback over free legal fees

Article written by eConveyancer, our preferred independent conveyancing firm.

This article is not intended to be financial advice to any individual. The views expressed are those of the author and Moneyfacts.co.uk does not endorse the content.

With the Bank of England making five successive base rate increases, many borrowers have searched for fixed rate deals to provide security on their monthly payments.  

However, it goes without saying that the lowest rate on the market is not necessarily the best deal. There are other factors to consider too, such as potential incentives, which have become commonplace from many providers.

Lenders often use this to attract customers. A perfect example are free legal fees, where the lender foots the bill for the legal side of the deal so long as you use one of their preferred solicitors.

The appeal of a free legals offer is obvious. The client gets to carry out the remortgage without having to shell out on the necessary legal work, and who doesn’t want to save some cash?

There can be the impression that this is a stress-free option too, since the solicitor comes recommended from the lender. It means the client and their broker don’t need to really put too much thought into identifying their own conveyancer to handle the legals for the deal.

Of course, the reality of making use of a free legals offer can be rather different.

The conveyancers used by lenders to provide these services have at times found themselves overwhelmed by case numbers, leading to delays and even some deals falling through completely.

Far from saving the client money and reducing stress, all too often the free legals offer has led to a more protracted, difficult experience, and even a financial hit for the borrower.

It’s because of these limitations that some lenders have opted for a different route, promising borrowers cashback to go towards the legal costs, allowing them and their brokers the freedom to choose their own conveyancing partner.

This has been a positive development for everyone involved. Brokers think carefully about the conveyancing partners they want to work with; they know that the client has put their faith in them to deliver a positive experience, and so want to work with conveyancers who can live up to that level of expectation.

Providing cashback means that the client enjoys that same saving, but can also benefit from a professional conveyancing experience.

A remortgage deal doesn’t have to lag behind when it comes to quick completions. It’s something that we have focused on at eConveyancer, developing our Rapid Remortgage service which means that once qualifying borrowers complete and return their starter pack, the solicitors make the case a legal certainty within just 24 hours.

This service has led to some remortgage deals completing incredibly swiftly, in some cases taking just four days. It’s a clear demonstration of the importance of working with the right partners - working with partners that truly understand the market and your needs will ensure a satisfying experience for all concerned.

Click here to get in touch with eConveyancer today to start a reliable conveyancing journey.