Estate agents are warning borrowers off HSBC, says Law Societyadmin March 21st, 2012
Estate agents have started to advise mortgage borrowers against using HSBC because of its recent decision to cut its conveyancing panel to just 42 firms, says The Law Society.
The lender made the decision in January and although customers are free to choose their own solicitor, HSBC will still use a panel firm for its own legal work, which will increase costs for consumers and could lead to delays, if they choose their own firm.
In a letter to its members today, Desmond Hudson, chief executive of The Law Society, says delays are emerging for mortgage applicants using HSBC.
He says: “The society understands that a number of estate agents are beginning to associate HSBC mortgage customers with delays to the process, which threaten what are already delicate property chains.
“We are aware that some estate agents are advising caution to consumers who are considering an HSBC mortgage.”
It says many of its members are highlighting to their clients the potential additional costs and delays associated with HSBC’s current panel and that as a result some clients are opting to go to another lender.
The Law Society says it is making headway with its campaign to alert borrowers of the detrimental effect HSBC’s decision is having, with many of its members lobbying politicians and consumer groups.
It says it has been contacted by a number of MPs, as well as Edwina Hart, the minister for business, enterprise, technology and science, in the Welsh government.