Controversial requirement dropped by HSBC panel
When the HSBC Conveyancing Panel released its requirements, it caused a lot of controversy. The HSBC panel only had 43 firms to complete the banks legal work and one of its requirements was only approved solicitors could be used by customers.
This caused a lot of complaints from lawyers and customers which has caused HSBC to change its rules. From August, the bank will permit all members from the Law Society Conveyancing Quality Scheme act for a borrower who wishes to buy a property. This will increase the selection of firms to more than 1,300.
Following these changes, a homebuyer will have three different options;
1. Instruct their own choice of conveyancer, which some have reported delays when choosing this option.
2. Use one of the companies on HSBC’s panel.
3. Instruct two solicitors, one to represent the bank and one to represent themselves.
The bank has committed itself to lending more than £14 billion in residential mortgages in 2012 and has been offering some of the best competitive fee free tracker deals since the beginning of the year. HSBC only sell mortgages direct to consumers, not through brokers.
The HSBC panel was made due to the rising level of mortgage fraud but it was not greeted by a welcoming committee. In fact, it was met by a crowd of complaining solicitors who wrote to the Office of Fair Trading and also made an online petition, which collected more than 2,000 signatures. If these measures did not spark a change, a protest was planned on the 25th May outside the banks Annual General Meeting.
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