HSBC Mortgage Changes! - Is Your Conveyancing Affected?
HSBC have recently changed their lending rules which can make buying a property with an HSBC mortgage more complicated and expensive than with other lenders.
Usually your preferred lawyer is able to act for both you and the bank/building society completing the mortgage, however, HSBC will only allow one of their panel firm to act on their behalf. Buyers who are obtaining a mortgage from HSBC must choose either to use a solicitor/conveyancer who is managed by their panel manager Countrywide or pay extra fees for HSBC's lawyer.
If you choose to use a different lawyer HSBC’s lawyer will issue a number of specific requirements, which your personally appointed lawyer has to meet before they will release mortgage funds.
This has impacted a vast number of HSBC mortgage customers as well as most solicitor and conveyancing firms in the UK!
Why could this be a problem?
HSBC mortgage customers are encountering a number of issues with this. If they choose to instruct their own preferred solicitor who is not authorised to act on behalf of HSBC it is likely to cost them an extra £160 (ex VAT) for HSBC’s lawyer. They can also expect delays in the conveyancing process due to the involvement of another third party.
Some HSBC mortgage customers dislike the new arrangement as they feel restricted to using an HSBC approved lawyer even though they would prefer to use their family lawyer or another legal service. It is important to note that you can instruct your own lawyer, but you are likely to pay additional fees.
A bigger problem seems to be when a lawyer is instructed, the conveyancing work begun and then the purchaser chooses an HSBC mortgage. This is can be infuriating for the house buyer, and in turn, the seller. If the buyer chooses to continue with their chosen lawyer they face potential delays and incur extra charges, but if they instruct an HSBC lawyer they face paying some of their original lawyer’s abortive legal costs, having to re-commission searches, losing the service of a lawyer they trust and face delays from having to start the legal process again.
How In-Deed is working for our HSBC clients
At In-Deed we are committed to making the conveyancing process as smooth as possible for all our clients, which of course includes our HSBC clients.
If you are planning to get an HSBC mortgage then please let us know before instructing. We will then be able to place you with a lawyer who is the most experienced in dealing with HSBC mortgages. We can also have this lawyer speak to you before instruction so they can explain in greater detail exactly how the conveyancing process is slightly different for you, the delays you might expect and the extra costs involved, so that nothing comes as a surprise later!
If you are already an In-Deed client and are getting an HSBC mortgage then please let us or your lawyer know as soon as possible. We will then be able to provide you with details of all your options and will work hard to resolve matters and come to a conclusion, which you are happy with.