Lender’s Panels – A Buyer’s Guide

Your offer’s accepted you apply for a mortgage and instruct your chosen solicitor, correct? Not necessarily. Nowadays your mortgage lender will likely insist you instruct a ‘panel solicitor’ being a pre-approved firm meeting the lenders required criteria.

Until recently, lenders had large numbers of law firms on their panels. However in the past few months big names such as Santander, Nationwide and Lloyds Banking Group have all reviewed and reduced those lists – in some cases removing solicitors who have worked with them for many years. Meaning an increasing number of borrowers are now finding their lender will not work with their chosen firm of solicitors – a situation that is reducing client choice and often adding costs, hassle and delay to the homebuying process.

Lenders operate a strict ‘window’ of panel membership with firms. This means it is vital when choosing your solicitor you are given up to date information. Often buyers will discuss matters with other professionals such as financial advisors or agents before speaking to a solicitor but it is important that you check with your solicitor directly to ensure they are currently a member of your lenders panel as lists held by third parties can often be out of date.

The alternative is to use your lender’s appointed solicitor. Unfortunately this also has its drawbacks; it could mean paying fees dictated by your lender and using someone unknown rather than a local solicitor you have used before or have had recommended. Often firms will be large corporate firms based in the south east of England with no local knowledge of the area you are buying in. You are also likely to deal with these firms by phone and email rather than face-to-face.

Nicholson Portnell believe it is fundamental that you are free to choose your adviser and not be put to extra expense because your solicitor is not on a lender’s panel. As the largest firm in Hexham, Nicholson Portnell is the right choice for potential buyers. Not only will you be instructing a CQS accredited firm with specialist local knowledge and expertise, you will also benefit from our membership of all mainstream mortgage providers. We are also happy to speak with your lender or financial advisor directly on a case specific query.

Photo by 401(K) 2013