Paragon Mortgages Ltd Conveyancing Panel Information

The majority of lenders do not operate a specific buy to let conveyancing panel but we are hearing about a few that do. We do not know what the position is with Paragon Mortgages Ltd as at todays date. If you're about to receive instructions from a client on a buy to let purchase with a mortgage from Paragon Mortgages Ltd we suggest that you call Paragon Mortgages Ltd to check the position.

During 2013, 69 sections of the UK Finance Lenders’ Handbook P2 were changed by Paragon Mortgages Ltd. Some changes are more important than others but as a firm on the Paragon Mortgages Ltd conveyancing panel you are of course obliged to comply with individual lender requirements, as set out in Part II of the UK Finance Lenders’ Handbook. Locktons have recently pointed out in an article that non-compliance with Part 2 requirements account for a number of high value claims, and it is therefore important to be aware of any particularly onerous terms that an individual lender may impose.

Remember: CML requirements are not guidelines; they are the lender client’s instructions.

You will be aware of the trend in recent years for lenders such as Paragon Mortgages Ltd to take a much more pro-active approach in relation to the management and make up of their conveyancer panels. The knock on effect of this is that it is more likely that there will be a higher number of cases where a conveyancer is not on the Paragon Mortgages Ltd panel. The situation that you find yourself in is where your client’s purchaser has his/her own lawyer and Paragon Mortgages Ltd have appointed a separate lawyer to act on their behalf where the new CML Part 3 requirements apply. Section 11.1 of the UK Finance Lenders’ Handbook Part 3 requires Paragon Mortgages Ltd’s panel solicitor to ‘ ...transfer the mortgage advance directly to the Seller’s conveyancer. The Seller’s conveyancer must be required to hold the mortgage advance on the terms of the required undertaking. The example borrower’s conveyancer’s undertaking letter includes a specific example of the seller’s undertaking’. You should expect to be advised to received the mortgage advance directly from the conveyancing solicitors for Paragon Mortgages Ltd. You will no doubt be required to undertake directly to Paragon Mortgages Ltd’s solicitors to discharge any charges secured on the property and to send directly to them the executed transfer and any other documents required to enable us to effect registration. Please remember to carefully consider undertakings in accordance with your firm’s protocol and record them in your undertakings logg. Please remember that as well as this breach of this undertaking having regulatory and compliance implications it’s breach could also result in your firm being removed off the Paragon Mortgages Ltd conveyancing panel.

You should supply details of the date of removal, information on the reason for removal, date of appeal and any reason given for reinstatement. This should not adversely impact your application but gives the Law Society a complete picture of what has occured.

You need to contact Paragon Mortgages Ltd to obtain standard documents. The The Council of Mortgage Lenders Handbook incorporates an express section for banks to establish who to contact to obtain standard documents. Paragon Mortgages Ltd in their Part 2’s state: You will need to quote the firm’s Paragon Mortgages Ltd solicitors panel reference.