HSBC UK Bank Conveyancing Panel Information

Section 16.2.1 of the UK Finance Lenders’ Handbook applicable to a solicitor on the HSBC UK Bank conveyancing panel reads ‘Our mortgage secures further advances. Consequently, when a further advance is required for alterations or improvements to the property we will not normally instruct a member of our conveyancing panel but if you are instructed the appropriate provisions of this Handbook will apply’.

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 HSBC UK Bank as at todays date. If you're about to receive instructions from a client on a buy to let purchase with a mortgage from HSBC UK Bank we suggest that you call HSBC UK Bank to check the position.

The concern here is if you are expect to enter into ‘more onerous’ conditions that than the Handbook obligations. You have to try and take an objective view as to whether the Terms relating to the HSBC UK Bank conveyancing appointment (or other terms for other lenders) are ‘more onerous’ than the UK Finance Lenders’ Handbook Conditions. Depending on the Terms you may need to provide details on your renewal form. If you are in any doubt please call your broker to discuss before completing the answer.

You will be aware of the trend in recent years for lenders such as HSBC UK Bank to take a much more pro-active approach in relation to the management and make up of their conveyancer panels. The knock on effect of this is that it is more likely that there will be a higher number of cases where a conveyancer is not on the HSBC UK Bank panel. The situation that you find yourself in is where your client’s purchaser has his/her own lawyer and HSBC UK Bank have appointed a separate lawyer to act on their behalf where the new CML Part 3 requirements apply. Section 11.1 of the UK Finance Lenders’ Handbook Part 3 requires HSBC UK Bank’s panel solicitor to ‘ ...transfer the mortgage advance directly to the Seller’s conveyancer. The Seller’s conveyancer must be required to hold the mortgage advance on the terms of the required undertaking. The example borrower’s conveyancer’s undertaking letter includes a specific example of the seller’s undertaking’. You should expect to be advised to received the mortgage advance directly from the conveyancing solicitors for HSBC UK Bank. You will no doubt be required to undertake directly to HSBC UK Bank’s solicitors to discharge any charges secured on the property and to send directly to them the executed transfer and any other documents required to enable us to effect registration. Please remember to carefully consider undertakings in accordance with your firm’s protocol and record them in your undertakings logg. Please remember that as well as this breach of this undertaking having regulatory and compliance implications it’s breach could also result in your firm being removed off the HSBC UK Bank conveyancing panel.

CQS accreditation gives no guarantee to lender panel acceptance. Nevertheless the Council of Mortgage Lenders have indicated that it is likely to become a prerequisite for firms wishing to join their approved list of firms. Some Lenders now use the scheme as the starting point for Panel membership as is the case with HSBC.

You should contact HSBC UK Bank to obtain standard documents. The CML Handbook incorporates an individual question for banks to reveal who to contact to obtain standard documents. HSBC UK Bank in their Part 2’s state: It is likely that you will need to disclose the firm’s HSBC UK Bank solicitors panel number.