View more on these topics

B&B looks to recoup same-day remortgage losses from solicitors

Bradford & Bingley is looking at taking legal action against solicitors who advised borrowers to take out same-day remortgages through its specialist lending arm, Mortgage Express, during the property boom.

Same-day remortgaging involves buying a property from a distressed seller at below market rate using a one-day bridging loan and then remortgaging the same day at its market value, creating a profit.

According to the FT, the bank says some solicitors ignored fraud guidelines and failed to disclose vital information when carrying out the transactions.

In a letter to solicitors, B&B says it will look to regain any losses it made on the deals from the solicitors involved.

It says: “The full extent of Mortgage Express’ losses in these transactions will be quantified once its interest in the property has been realised. Mortgage Express will seek its full losses from you, including the costs of repossession/sale, its cost of funding and the shortfall on its mortgage advance.”

The FT report states B&B believes, in some cases, there has been an “actionable breach” of the Council of Mortgage Lenders handbook, which says: “solicitors have a professional duty… to provide specific information when lodging mortgage applications”. The lender says the solicitors failed to say borrowers had bought the property less than six months before remortgaging.

B&B says it will only take action on any same-day remortgages where there has been an actionable breach of the CML handbook.

While Bradford & Bingley has not disclosed the exact number of solicitors involved, it says only a small proportion of the buy-to-let mortgage book is affected.



Bupa offers free health check with IP sales

New customers who buy one of Bupa’s income protection policies will receive a complimentary Bupa core health assessment worth £149. Introducing intermediaries will also qualify for the free health check. The assessments can be taken at any of the 40 Bupa centres around the UK and are available until October 17. Bupa’s core health assessment, […]

Open market annuity service set up

Fair Investment Company has partnered with The Annuity Team to offer its customers a new open market option annuity service.

Ascentric launches Qrops on platform

Ascentric has launched the MC Trustees Qrops on its platform. The firm says it is the first Qrops to be launched on a UK wrap platform. The MCT Malta Private Retirement Scheme is aimed at customers with UK pension rights who have not been resident in the UK for five complete tax years or are […]


Why is Aifa opening up to restricted option?

Regular readers of this column will not be surprised to read that I have been a member of a trade union all of my working life. I first joined as a teenager many years ago and continue to pay my monthly subs today. The role of a trade union is relatively easy to understand. They […]


News and expert analysis straight to your inbox

Sign up


There are 3 comments at the moment, we would love to hear your opinion too.

  1. Its always the same. The lenders knew what was going on, but were only interested in the market share. Fortunately I did not get involved,. Now its all gone pearshaped they are looking for someone to take the blame and cough up. During the heyday, lenders sent their BDM,s out to get the business no matter what the cost.

  2. I distinctly recall the BDMs maketing the virtues of same day remortgaging. It was great for those who flipped properties overnight and walked off with a legitimate profit. Can someone please explain what losses the B&B are referring to. They advanced money and charged interest. Don’t bother it only seems to refer to parasites/solicitors.

  3. I seem to remember a certain Scottish bank funding sale and rent back deals without even bothering with the bridge. 85% discounted purchase price, 100% borrowing covered. You cannot get more complicity than that.

    We taxpayers now own the lender of course.

Leave a comment


Why register with Money Marketing ?

Providing trusted insight for professional advisers. Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm