Through a new remortgage product, Tesco remortgage customers are being offered a cashback amount ranging from £250-£1000 or they can take advantage of a free conveyancing service.
Julian Hartley, director of mortgages, savings and loans, said: “We are delighted to be offering cashback on a range of remortgage products, offering customers greater choice when they are looking to remortgage.
“Currently all remortgage customers receive a free standard conveyancing service and by providing this extra little help, customers can either opt for this free service, or take a product with a cashback contribution, giving them the flexibility to choose their own legal services.”
These services could be a welcome relief for people that may be looking to remortgage following the recent interest rate rises. In a time when the government is looking at helping first-time buyers in particular, it is important that those with existing mortgages are also offered relief from fees.
Tesco Money further claim: “If you’re remortgaging with us and the product you’ve applied for includes our free standard legal service, we will meet the standard legal costs of your remortgage.” However, what constitutes ‘standard’ legal cover is very subjective and could lead to additional fees being charged that Tesco will not cover.
In a time when SRA reforms and the push for full transparency are so rampant in the sector, the link between services and a cashback alternative could begin to devalue legal service professionals and the vital jobs they perform.
Are services and offers like this devaluing the work of conveyancers? Are products and services like this a good way of ensuring the conveyancing sector remains competitive?