HSBC introduces 'approved solicitors panel' for conveyancing | Money | guardian.co.uk

HSBC introduces 'approved solicitors panel' for conveyancing | Money | guardian.co.uk

Homebuyers who take a mortgage from HSBC will be forced to use one of a panel of 43 firms chosen by the bank to do their legal work, or face paying more for their conveyancing, after a change in the lender's rules.

Previously, customers could choose their own legal representation and the firm would act for HSBC too. However, following warnings over mortgage fraud from the National Fraud Authority, which puts the cost to the industry at £1bn a year, and an instruction from the Financial Services Authority telling lenders they need to know the firms they work with better, HSBC has announced this will no longer be an option.

Instead, borrowers can opt to have one of the panel do their legal work too, at a fixed cost, or choose to use their own solicitor and pay a separate fee of £192 (£160 plus VAT) for HSBC's lawyer. In most cases that will be more expensive than using the panel.