Only firms on HSBC’s managed panel of conveyancers are be able to act for both the borrower and the lender with all other firms able to act for the borrower only.
Previously HSBC accepted the borrower’s solicitors to act on their behalf however in January this year, the lender cut its panel down to just 43 firms causing backlash from the conveyancing industry.
Now all CQS firms will be able to act for HSBC. From the outset CQS accredited sole practitioners will only be able to handle cases with mortgage values up to £150,000.
It is understood that both the Law Society and HSBC will be working to raise this value for CQS sole practitioners.
The Law Society has invited HSBC to assist it further in developing the CQS assessment scheme so that it becomes the automatic requirement for a firm to join a mortgage lender’s conveyancing panel.
HSBC suggested the Law Society consider inviting other mortgage lenders to assist the legal trade association in this respect, a proposal the society accepted.
Martijn van der Heijden, head of lending at HSBC, said: “We introduced our panel in January to provide additional protection for both our customers and the bank.
“We listened to feedback from customers and solicitors and through working with the Law Society can now agree to more solicitors acting for us while also managing our risks and maintaining the unique benefits of using one of our panel solicitors.
“We are committed to helping our home-buying customers and have set aside £15bn to lend in residential mortgages this year.”
Desmond Hudson, chief executive of the Law Society, said: “With this move HSBC is demonstrating its commitment to putting customers first as well as its confidence in the CQS scheme. The bank has been constructive in working with the Law Society, in designing this solution.
“As well as giving its customers a much wider choice of solicitor that can also act for HSBC, it has aligned itself further with the CQS and the high standards the scheme represents.
“The Law Society and its members have campaigned for this change in the interests of solicitors’ home-buying clients since HSBC introduced its original panel. HSBC’s willingness to engage with us has helped secure a good outcome for their mortgage customers, our CQS members and the house buying public.”
