Mortgage lender sues solicitors for same day remortgages
August 26, 2010
Posted by:Sonita Hayward
Bradford and Bingley are bringing claims for professional negligence against solicitors who acted for them in relation to same-day remortgages. This involves buying a property for a below market-value price using a one-day bridging loan and remortgaging on the same day for the actual value of the property, to make an immediate profit. Bradford and Bingley are claiming that solicitors did not report the circumstances of these transactions to them, specifically the fact that the property had been owned by the borrower for less than 6 months, in breach of the duties owed under the CML Handbook regulations. They have suffered losses in their buy to let mortgage book as a result of a number of these transactions.