Do First Direct use Countrywide Conveyancing like HSBC

kingstreet

Not intending to defend HSBC's daft plan here, but you are not bound to use Countrywide if you apply to HSBC for a mortgage. The waters are muddied a little but here goes;-

- if you choose to use your own solicitor which is not on the HSBC 43 firm panel, the bank will appoint a solicitor to act for it, at your expense, £160 + VAT. It seems that this is routed via Countrywide, the panel manager, and this means it's very possible you will end up with Countrywide representing HSBC.

- if you choose a solicitor from the 43 strong HSBC panel to act for you, HSBC will use the same firm to act for it and you will avoid the additional charge. You will be able to actively avoid Countrywide by picking one of the other 42 firms on the panel.

The borrower has to balance the quality of the mortgage deal on offer with the solicitor situation and decide accordingly.

As Richard has said, First Direct has avoided going this route for now, but I suspect this will only be a short-term measure and will change once any "teething troubles" have been resolved.

irishcol

kingstreet wrote: »

Not intending to defend HSBC's daft plan here, but you are not bound to use Countrywide if you apply to HSBC for a mortgage. The waters are muddied a little but here goes;-

- if you choose to use your own solicitor which is not on the HSBC 43 firm panel, the bank will appoint a solicitor to act for it, at your expense, £160 + VAT. It seems that this is routed via Countrywide, the panel manager, and this means it's very possible you will end up with Countrywide representing HSBC.

- if you choose a solicitor from the 43 strong HSBC panel to act for you, HSBC will use the same firm to act for it and you will avoid the additional charge. You will be able to actively avoid Countrywide by picking one of the other 42 firms on the panel.

The borrower has to balance the quality of the mortgage deal on offer with the solicitor situation and decide accordingly.

As Richard has said, First Direct has avoided going this route for now, but I suspect this will only be a short-term measure and will change once any "teething troubles" have been resolved.

That's exactly how I understand it. And unfortunately I've had to understand it, since the change to HSBC's rule came in shortly after I had my mortgage approved by HSBC and after I had already appointed my own solicitor.

Countrywide have held up the process by:
- losing information sent by my solicitor
- delaying / not responding to requests for approval
- raising queries which have already been covered by my solicitor (and forwarded onto Countrywide, but they haven't read them)
- initially agreeing to a personal search (in writing), then subsequently delaying exchange by insisting on an offical government search being carried out
- refusing to return calls to HSBC, following my complaints
- insisitng on 11 days between exchange and completion

I estimate that Countrywide have added 3 weeks (and significant frustration to all aprties) to the process - we are now hoping to exchange today.

The only consolation is that HSBC have agreed to waive the £192 fee, as they introduced it after we'd had the mortgage application processed. I would have happily paid double that for Countrywide NOT to have been involved at all!

Richard_Webster

- initially agreeing to a personal search (in writing), then subsequently delaying exchange by insisting on an offical government search being carried out

HSBC changed the rules about this quite recently! On 6th january they said they would accept personal searches from insurance backed companies (which was a change from their previous view) then later they changed their minds. A legitimate cause of complaint to HSBC if you ahev had to pay two sets of search fees

irishcol

Richard_Webster wrote: »

HSBC changed the rules about this quite recently! On 6th january they said they would accept personal searches from insurance backed companies (which was a change from their previous view) then later they changed their minds. A legitimate cause of complaint to HSBC if you have had to pay two sets of search fees

Thanks for the info.

I've already raised my complaint by phone, and intend following it up in a carefully-worded letter (with exact details of the delay periods) once we've finally exchanged and completed.

If Countrywide weren't such an inept bunch of fools, I would probably let it lie, since we've already done very well out of HSBC. Not only did we get a great rate, but we also got it for zero fee and zero valuation.

ReflexReaction

So how do I know what the 43 solicitors are on the HSBC panel then?

SuzieSue

ReflexReaction wrote: »

So how do I know what the 43 solicitors are on the HSBC panel then?

They will give you a list and you have to choose one.

Thrugelmir

As much as people wish to boycott HBSC mortgages. The fact remains that they are the only major lender that will be increasing their funds availability significantly during 2012 ( up 25% on 2011).

So can set terms on which they conduct business a not unreasonable request. As Kingstreet says there will be teething problems. Longer term standards will improve, as HSBC are here to stay.