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Nationwide tightens conveyancing panel requirements

Nationwide

Nationwide has increased the requirements it places on conveyancers to remain on its panel, removing firms that complete less than one mortgage case a week.

The Law Society of Scotland says the move has led to 200 of the 700 Scottish conveyancing firms on Nationwide’s panel being removed in April. Conveyancers have to complete four Nationwide cases a year.

The lender says it started removing low-volume firms from its panel at the start of this year but will not confirm how many firms have been struck off. The building society says the panel has between 3,500 and 4,000 firms.

Exclusion from the conveyancing panel can be appealed if the firm is a member of the Law Society’s Conveyancing Quality Scheme in England or Wales. The Law Society of Scotland does not run an equivalent scheme.

A Nationwide spokeswoman says: “Since early 2012, we have operated a policy whereby low-volume firms do not have the automatic option of remaining on the panel. Low-volume is set at one completion per week. Exceptions are made for firms which meet a particular need on account of their locality or services – for example they service a more remote community.”

Nationwide says no more than 0.3 per cent of its transactions have been affected by the cuts.

The convener of the Law Society’s Property Law Committee Ross MacKay says: “It would appear that these new measures take little account of the Scottish jurisdiction, are disproportionate to the actual risk of mortgage fraud, could threaten the continuing viability of some firms and will inevitably inconvenience its own customers.”

HSBC came under fire earlier this year when it was revealed that only 43 firms were able to act for both the borrower and the lender. HSBC reversed this decision to allow all Law Society accredited solicitors on the panel, covering around 1,400 firms.

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Comments

There are 3 comments at the moment, we would love to hear your opinion too.

  1. I have heard of solicitors in recent months charging more for coveyancing if any of the parties has a mortgage with HSBC due to the delays and hassle incurred. Is ths set to be another ‘benefit’ of mutuality?

  2. George Williamson 6th August 2012 at 1:09 pm

    To apply this in Scotland shows a complete lack of understanding for our distinct House Buying Process and could be argued to be Institutionally Racist.

    Looks like Nationwide will have to change its name to “Nationwide (but not Scotland)” – please be aware that we will also need to factor the cost of clients changing Solicitor into the advice process to decide whether to recomend a Natiowide product.

  3. I can count the number of lawyers who have the knowledge to examine the deeds, the covenants, the planning conditions and the planning obligations on one finger, well maybe half a finger.

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