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HSBC Mortgages to accept CQS conveyancing solicitors in August
As of August 2012 HSBC is changing its policy on which solicitors can provide conveyancing for their mortgages.
Usually your preferred lawyer is able to act for both you and the bank/building society completing the mortgage. By having the same conveyancing lawyer acting for both the lender and the purchaser makes the process faster, cheaper and easier for all involved.
In February, HSBC changed its lending rules to protect itself against mortgage fraud. HSBC mortgage customers now have to instruct one of HSBC’s panel firms and be managed by HSBC’s panel manager Countrywide, or pay for HSBC to have their own lawyer (also known as separate representation) at a cost of £192 inc. VAT.
HSBC’s decision was met with widespread criticism from HSBCs mortgage customers and the thousands of law firms HSBC were originally happy to work with. HSBC customers resented the fact that instructing their chosen conveyancing solicitor incurred an additional legal fee and could expect lengthy delays. Law firms also faced losing business and difficulties with their current clients who were receiving a HSBC mortgage.
From August all HSBC Mortgage customers will be able to choose a CQS accredited solicitor and not have to pay for separate representation. If you choose to instruct someone who is not CQS accredited then the additional fee will still apply and you can still expect to experience delays.
CQS is an acronym of Conveyancing Quality Scheme and provides a recognised quality standard for residential conveyancing practices. Hundreds of law firms have already been CQS approved with many waiting to receive approval.
What does this mean for In-Deed Conveyancing
At the moment all our clients who are receiving a HSBC mortgage are assigned to the conveyancing lawyer who is the most experienced in dealing with the complications that can arise from HSBC mortgages. Our HSBC clients have to pay £192 for HSBCs separate representation and can expect to experience delays, though of course we aim to minimise these as much as possible.
As of August 2012 you can instruct an In-Deed lawyer and not pay for separate representation or expect delays in the conveyancing process. All the law firms we use are CQS accredited and therefore able to represent both you and HSBC.
If you would like a quote for your conveyancing you can get an instant free conveyancing quote here.