Customers who choose to use one of the panel firms will have the advantage of competitive fixed fees), as well as benefiting from the speed, efficiency and consistent quality of service provided by the firms on the panel.
Customers will continue to be free to use their own solicitor or conveyancer to act for them, but HSBC will use a panel firm to undertake its own legal requirements.
Previously the customer's conveyancer has usually undertaken both parties' legal work. Should a customer choose a non panel firm this new process will separate the two pieces of legal work, however, as before, the customer will pay for both.
HSBC has selected Countrywide to manage the panel of solicitors and licensed conveyancers. If a customer elects to use a member of the panel, the bank will use the same firm.
Customers who choose to appoint a panel firm to act for them can take advantage of two additional benefits should their property purchase fall through:
- No sale - no legal fees: Customers will not be charged for any legal work undertaken if the sale or purchase falls through. Customers will only be charged for external costs incurred to date, such as searches.
- Free searches on your replacement purchase: If a customer paid for searches on a property that subsequently falls through, there will be no fees for the same searches on the next property if they find it within 6 months
Other benefits for customers opting to use a panel firm include:
- Fixed fees: Customers know exactly how much the legal work will cost for a straightforward purchase. This allows them to budget accurately.
- 24 hour updates, 7 days a week: Customers can see what's happening with their sale and/or purchase on-line, adding transparency to the process.
- Managed service: the sale and/or purchase will be tracked to ensure the solicitoris carrying out the work in a timely manner.
Peter Dockar, Head of Mortgages at HSBC, commented:
"Our new panel arrangement will spare customers the time and hassle of searching for a firm to do the important conveyancing work on their new property.
"Customers who choose to use a firm on the panel can benefit from agreed conveyancing costs as well as valuable guarantees should the seller pull out. We also believe this will provide additional protection for our customers and HSBC."
Eddie Goldsmith of Goldsmith Williams, comments:
“The New Year has barely begun and news of HSBC’s announcement to launch its own panel solicitors and licensed conveyancers is a real sign of the times.
"The fact that such a mainstream lender has made a declaration of this significance is an indication of the lending industry’s concern on the quality of conveyancing services generally.
“As a provider of specialist conveyancing services, we at Goldsmith Williams are well placed to take advantage of the rapidly changing market, but it does make you wonder what the fate of others will be as this signals a clear divide in the market between general conveyancing and specialist practices.
“The move by HSBC may well lead to customers having to pay more for services, which is, of course, unfortunate for the consumer, but it underlines the challenges out there for the conveyancing industry.
"Customers are unlikely to be prepared to pay extra than they need for conveyancing and this restricted panel offering inevitably signals a growing trend which is likely to be followed by other lenders.
"I suspect HSBC’s announcement is just the beginning of the shape of things to come.”
