Common questions asked concerning the ASTRA mortgages Conveyancing Panel from members of the public
I am in the process of selling my apartment and the EA has just texted me to warn that the purchasers are appointing a new conveyancer. I am told that this is due to the fact that ASTRA mortgages will only engage with solicitors on their approved list. On what basis would a major mortgage company only engage with specific solicitors?
Banks have always had panels of law firms they are willing to work with, but in the past few years big names such as Nationwide , have reviewed and reduced their conveyancing panel– in some cases removing conveyancing firms who have worked with them for more than 15 years.
Banks blame a rise in fraud by way of justification for the cull – criteria have been tightened and a smaller panel should be easier to keep an eye on. No lender will say how many solicitors have been dropped, claiming the information is commercially sensitive, but the Law Society says it is hearing daily from firms that have been removed from panels, or have other concerns about them. Some do not even realise they have been dropped until contacted by a borrower who has instructed them as might be the situation in your buyer’s case. Your purchasers are unlikely to have any sway in the decision.
I do hope you can help me. My conveyancer is assuring me that he is legally obliged to order a Local Authority search stemming from the fact that the firm are on the ASTRA mortgages conveyancing panel. Is this really necessary?
Unfortunately both you and your lawyer have little choice here. Given that you are taking out a loan with ASTRA mortgages your lawyer has to comply with their conditions as set out in their version of the CML Conveyancing Handbook. Your lawyer would have previously signed the Terms and Conditions of ASTRA mortgages’s conveyancing panel appointment which obliges them to follow the CML Handbook requirements last updated ASTRA mortgages. even if you were a cash buyer you would be ill advised not to carry out a local authority search.
I am looking to buy a house and need a conveyancing solicitor in Birmingham who is on the ASTRA mortgages approved. Could you point me in the right direction as regards a conveyancing firm?
Our service is a directory service for firms who wish to be listed as being on the approved conveyancing panel for ASTRA mortgages . We don’t recommend any particular firm.
Please explain the implications if my solicitor is suspended from the ASTRA mortgages Conveyancing panel in advance of completion?
The first thing to point out is that, this is very unlikely to happen. In most cases even where a law firm is removed off of a panel the lender would allow the completion to go ahead as the lender would appreciate the difficulties that they would place you in if you have ti instruct a new solicitor days before completion. In a worst case scenario where the lender insists that you instruct a new firm then it is possible for a very good lawyer to expedite the conveyancing albeit that you may pay a significant premium for this. The analogous situation is where a buyer instructs a lawyer, exchanges contracts and the law firm is shut down by the regulator such as the SRA. Again, in this situation you can find lawyers who can troubleshoot their way to bring the conveyancing to a satisfactory conclusion - albeit at a cost.
In what circumstances might ASTRA mortgages amend or withdraw their mortgage offer?
Lenders such as ASTRA mortgages can withdraw their mortgage offer although this is unusual. In the unlikely event that ASTRA mortgages withdraw their offer they may or may not inform you or the lawyer as to the reasons why. There are various possible reasons but here are a number of examples:
- If the borrower informs ASTRA mortgages of a change in the loan amount agreed
- A cashback to the buyer, or | part of the price includes a non-cash incentive to the buyer (eg paid stamp duty land tax),or | any indirect incentive (cash or non cash) or rental guarantee, of which the lender was previously unaware
- Situations where information provided by the borrower that enabled the lender to make a lending decision is fraudulent, incorrect or misleading.
- Where to proceed with the Mortgage offer would be unlawful
- If the lender reasonably suspects that the applicant, borrower, mortgagor or guarantor is involved in any criminal or fraudulent activity, including trading in illegal drugs or other substances, theft, robbery, deception or other serious offences, or if the applicant borrower, mortgagor or guarantor has a conviction for any serious criminal offence, including theft, deception, fraud, robbery or trade in illegal drugs or other substances;