Bank of Scotland Conveyancing Panel Information

In operating open conveyancing panels, lenders such as Bank of Scotland face a number of fraud and negligence risks. While there is no authoritative source of data on lender exposure to solicitor–led mortgage fraud, anecdotal evidence from lenders indicates exposure on individual cases are often in the millions of pounds. The National Fraud Authority estimates that £1bn per year is lost in mortgage -related frauds in total, which is seen as a conservative estimate.

These risks are exacerbated by the lack of a comprehensive set of data on all conveyancing firms (which, for the avoidance of doubt, would include solicitors and conveyancers across the UK) which is in a readily accessible format. Currently, lenders vet the suitability of their panel firms against a variety of disparate, incomplete and potentially inaccurate sets of information. One top 5 lender pointed out to us that it is almost impossible to track individual fraudsters who move from firm to firm, especially where they are no longer registered or no longer hold a valid practicing certificate.

Bank of Scotland and other lenders are in varying stages of reviewing their approach to vetting firms on their conveyancing panels, to ensure their ongoing exposure to unsuitable firms is reduced. There is also regulatory impetus on lenders to ensure that they have satisfactory oversight of their third party panels, including a due-diligence process.

Most lenders do not operate a specific buy to let conveyancing panel but we are hearing about a few that do. We do not know what the position is with Bank of Scotland as at todays date. If you're about to receive instructions from a client on a buy to let purchase with a mortgage from Bank of Scotland we suggest that you call Bank of Scotland to check the position.

During 2013, 85 sections of the UK Finance Lenders’ Handbook P2 were changed by Bank of Scotland. Some changes are more important than others but as a firm on the Bank of Scotland conveyancing panel you are of course obliged to comply with individual lender requirements, as set out in Part II of the UK Finance Lenders’ Handbook. Locktons have recently pointed out in an article that non-compliance with Part 2 requirements account for a number of high value claims, and it is therefore important to be aware of any particularly onerous terms that an individual lender may impose.

Remember: CML requirements are not guidelines; they are the lender client’s instructions.

For most lenders participation on the lender's panel of conveyancers is at the absolute discretion of the the lender. Many lenders reserve the right to accept or reject any application without giving any reason. You should check your original application to join the Bank of Scotland conveyancing panel to see if you are entitled to a reason.

You should provide details of the date of removal, information on the reason for removal, date of appeal and any reason given for reinstatement. This should not adversely impact your application but gives the CQS team viability as to what has gone on.

You should communicate with Bank of Scotland to obtain standard documents. The CML Handbook contains an individual section for lenders to enumerate who to contact to obtain standard documents. Bank of Scotland in their Part 2’s state: It is likely that you will need to quote your Bank of Scotland conveyancing panel reference.