I act for a lender. Should I send mortgage documents directly to the borrower?
I act for a UK finance-member lender in a residential property mortgage. The borrower is separately represented. The lender has sent me the mortgage deed, mortgage conditions booklet and a copy of the mortgage offer. Should I send these directly to the borrower?
No. Part 3 of the UK Finance Mortgage Lenders’ Handbook governs the situation where a firm is separately representing a lender in a residential conveyancing transaction.
Paragraph 10.1 of Part 3 requires that you write to the borrower’s conveyancer enclosing the mortgage documents and request that they:
- explain to the borrower the legal implications of entering into the mortgage, and
- confirm in writing that they have done so
If you have not yet made contact with the borrower’s conveyancer, you may wish to make use of the standard requirements letter as your first written communication.
A link to the standard requirements letter is contained at paragraph 1.4 of Part 3. You will see that this contains reference to the mortgage documentation.
The letter is a template only and can be adapted as you see fit to enable you to certify good title to your lender client.
Generally, you should follow the requirements of Part 3 and any specific requirements of your lender client in these circumstances.
Disclaimer
While every effort has been made to ensure the accuracy of the information in this article, it does not constitute legal advice and cannot be relied upon as such. The Law Society does not accept any responsibility for liabilities arising as a result of reliance upon the information given.
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