HSBC sets up conveyancing panel

From Monday 9 January, HSBC is establishing a panel of solicitors and licensed conveyancers, which will be managed by Countrywide, to provide legal services to the bank’s home buying mortgage customers.

If a customer elects to use a member of the panel, HSBC will use the same firm. There is a five-tier fixed fee structure with fees ranging from £399 for properties up to £100,000 going up to £549 for homes between £300,000 and £500,000.

Customers can still choose to use their own solicitor or conveyancer to act for them, but HSBC will use a panel firm to undertake its own legal requirements and there will be an extra cost to the borrower.

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. The borrower will pay £192 to cover the legal costs incurred by HSBC as well as the costs of the non panel firm.

If a customer appoints a panel firm to act for them can take advantage of two additional benefits should their property purchase fall through. Customers will not be charged for any legal work undertaken but they will be charged for external costs incurred to date, such as searches.

Customers may also be entitled to free searches on a 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 six months. This assumes that the seller withdraws from the sale or the mortgage valuation varies by more than 5% to purchase price. It als excludes Scotland and Northern Ireland properties due to different legal process.

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.”