Following the market changing news that HSBC will now require its borrowers to use its own limited panel or have separate representation HSBC has decided to subscribe to the CML Handbook.
On Friday morning last week we were informed by Conveycentric, the creators of LENDERmonitor that HSBC Bank PLC have, just published their CML Handbook Part 2 requirements on-line for the first time. Up until now HSBC had issued their blue booklet of conveyancer requirements direct to lawyers with their mortgage offers.
Simon Seaton of Conveycentic comments “Up until now, if you were searching on-line for the CML handbook Part 2s for HSBC you would be faced with the wording ‘This lender does not subscribe to the CML Lenders’ Handbook. Please contact the lender direct’. This lender has now given specific answers to 73 sections. As of yesterday, conveyancers should be checking the HSBC Part 2’s on-line before submitting the COTs”
We understand that the new Part 2s vary the previous conditions in the booklet. A change of particular note is the fact that personal searches are now acceptable.
As the new part 3 of the CML Handbook relating to separate representation has yet to be published the new part 2 will help the majority of conveyancers who will be acting for the borrower alone determine what will be acceptable to the HSBC lawyer that they appoint on separately represented matters.
The adoption of the CML Handbook and confirmation of the acceptability of personal searches is a large change for HSBC and one that will no doubt be welcomed by the providers of personal searches to the new panel.
Examples from the new part 2 include:
7.3 Does the lender require a consent to mortgage from all occupants aged 17 or over?
A letter of consent is not required for:-
a) full time students living away from home; and b) a person who has turned 17 after the legal charge has been signed.
A letter of consent will be required for:-
a) any occupants aged 17 years or over;
b) when the client is a borrower but not a depositor; and
c) anyone who may have a financial interest in the property.
14.2.2 Which documents must I send after completion?
A copy of the Title Information Document
A copy of the Bank’s legal charge
Any Indemnity Policy
Any signed Letters of Consent
Share Certificate if a requirement of the lease
LENDERmonitor the Conveycentric product provides conveyancers with a subscription service that sends out email alerts advising when a lender makes a change to their policy.