First Direct Conveyancing Panel Information

The Scottish Law Society has suggested that solicitors should check their lender panel status prior to accepting client instructions to act. The advice is lender-agnostic as it does not relate specifically to solicitors on the First Direct conveyancing panel. The recommendation arises from the practice of a number of mortgage lenders who remove solicitors from their panels without prior notice as part of their panel management system, which can lead to some solicitors discovering this only once instructed. This is sensible advice as a client finding out midway through a transaction that their lawyer is not on the approved lender panel is very frustrating and can lead to complaints. Many online consumer forums contain posts where someone is complaining about finding that their lawyer is not on a lender conveyancing panel. Such forums include moneysavingexpert.com

Although not necessarily published, lenders have varying criteria . We do not hold specific requirements relating to the questions raised as part of the application to be on the First Direct conveyancing panel. Typically lenders need to have full knowledge of a firm including (but not limited to):

Details of any accreditation e.g. Lexcel or

Full career history for each solicitor including admission date to the relevant Law Society

SRA or equivalent regulator registration number where applicable

Structure of firm and, where applicable, its group

Summary of annual accounts

Automated alerting to inform lenders when there is a fundamental change to the firm (e.g. new disciplinary action)

top-up split and history of any refusals

Whether the firm is able to operate in other jurisdictions

Whether the firm has ever applied for accreditation and the outcome of the application

House price discrepancies (declared to lender vs. registered at Land Registry)

In operating open conveyancing panels, lenders such as First Direct 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.

First Direct 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.

The best placed professionals to answer this question are your insurance brokers. The chances are that on the basis that you have not been removed for fraud or negligence reasons that there will be little or no impact. The main reason why a firm would be removed off of a lender panel is due to low volume of conveyancing cases although there may be a number of criteria for First Direct solicitor panel membership. Please remember that it is always important that you complete your insurance forms accurately.

You would be advised to get in touch with First Direct to obtain standard documents. The The Council of Mortgage Lenders Handbook has a specific inquiry for lenders to cite who to contact to obtain standard documents. First Direct in their Part 2’s state: You will need to disclose the firm’s First Direct conveyancing panel number.