Currently over 30% of lenders already have this as a mandatory requirement in either their part 2 of the Council of Mortgage Lenders Handbook or their Specific Requirements of the Building Societies Association Mortgage Instructions.
The two industry bodies CoPSO and PCCB have written to all mortgage lenders, recognising those that already require that personal searches conducted on behalf of their buyer are to be provided only by Search Code subscribers, while urging those that currently don’t to follow suit.
By making it a requirement for all conveyancers instructed to only commission and accept searches from Code subscribers, lenders can be confident that the information provided to their customers is thorough and reliable, that it will be provided in a timely manner and that it has come from a trusted source.
The letters, which have been sent to lenders this week, overtly ask lenders to make the Search Code a mandatory feature of their Part 2 of the CML Lenders handbook or Specific Requirements of the BSA Mortgage Instructions.
James Sherwood-Rogers, chairman of CoPSO, said: “The Search Code acts as the mark of quality for private sector search providers and is highly regarded across the industry.
"We have launched this campaign because we want all lenders to ensure that the search reports that they and their customers rely upon are of the highest quality and conducted with the utmost integrity.
"Lenders and conveyancers have a social responsibility to protect their customers from relying on inaccurate or incomplete information when buying their new home.
“By making it a mandatory requirement that all personal searches must be carried out only by Search Code subscribers, lenders can be confident that they are protecting their customer and their conveyancer, while protecting themselves as a mortgage provider.”
The Code ensures that all private sector searches are carried out in a consistent and professional manner and are delivered on time and only by fully regulated providers. It offers protection by helping to reduce the circulation of fraudulent search reports and by ensuring that the necessary insurances are in place, should an issue arise at a later date.
The Code sets out minimum standards which organisations compiling and selling search reports have to meet. All subscribers to the Code are listed on a register of subscribing firms, maintained by the PCCB and all display the trusted Search Code logo prominently on all search reports they produce.
