HSBC mortgage conveyancing panel could cause havoc for buyers
The newly announced HSBC mortgage conveyancing panel has reduced the number of legal firms who can act for both the HSBC and the buyer from 1000s to just over 40.
Many believe that while restrictions on the HSBC’s legal panel have been done with good intentions, they may actually cause havoc for both buyers and brokers trying to get mortgages completed quickly.
An HSBC mortgage spokesperson has said that the lender is not restricting consumer choice as customers will still be able to choose their own solicitor. The lender advised that it launched its conveyancing panel to help protect its borrowers from mortgage fraud. The lender said that they have never had a panel before and, customers who use their own solicitor, will be worked with in a professional manner and it will take no longer for any loan to complete.
Brokers are taking a different view though. Many believe if a customer’s conveyancer is not one of the 40 plus firms on the HSBC mortgage panel, it will mean two different conveyancers will be involved in the process. By involving two separate firms of solicitors many brokers believe both costs and delays are likely to increase. Onerous requirements are being predicted to result in both exchange of contracts and completions being delayed which could result in more aborted transactions.
