Members have contacted us to raise further concerns about the latest version of the undertaking issued by HSBC panel members. For example, the borrower's solicitor is currently required to undertake:
- that the borrower will have vacant possession on completion (consider implications - see paragraph 6.5 of CML Handbook part 1)
- that the transfer and any other documents relating to the mortgage will be provided within three working days following completion (this is not within the solicitor's control)
- that evidence of discharge of all previous charges or burdens on the title which would prevent the lender being registered with a first legal charge will be provided following completion (this is within the control of the outgoing lender)
The borrower's solicitor is also being told that an undertaking will be required from the seller's solicitor to the panel solicitor (the borrower's and seller's solicitors may require undertakings in return from the panel solicitors).
Other valid concerns have also been expressed. We will continue to gather members' concerns have about the content of the undertakings and will use these to inform discussions with HSBC and the Council of Mortgage Lenders (CML). The CML has indicated that it would like to publish the proposed separate representation instructions (which will be amended from the draft form) by the end of March.
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