Mis-sold Mortgage Claims > Mortgage News
Mortgage Fraud Prompts HSBC to Have Specific Solicitors for Conveyancing
Wed, 11 Jan 2012
Homebuyers getting a mortgage from HSBC will have to use one of the panel of 43 companies selected by the bank to undertake their legal work, or face the prospect of forking out more for their conveyancing, upon an alteration to mortgage lenders rules.

In the past customers were able to select their own legal representation and that company would act for HSBC as well.

However, due to warnings about mortgage fraud from the National Fraud Authority, which cites the cost of mortgage fraud to the industry at £1bn per annum, and a Financial Services Authority instruction informing lenders that they need to improve the relationship with the companies they work with, HSBC has declared this is not going to be an option any more.

Borrowers can select a company on the panel to undertake their legal work as well, at a set cost, or opt to use their own solicitor and pay a further fee of £192 inclusive of VAT for HSBC's lawyer. In the majority of cases this will be more expensive than opting to use the panel.

Other mortgage lenders have been reducing the panels of firms they are willing to work with for some months.
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