Metro Bank Conveyancing Panel Information

The Council of Licensed Conveyancers has entered discussions with lenders and their representative bodies to see whether and how the risks that lenders wish to mitigate could be addressed through the regulatory framework rather than via ad hoc arrangements that can differ from lender to lender. It is likely that that the CLC have been in touch with lenders such as Metro Bank in the recent past.

When a solicitor is acting for both Metro Bank and borrower there is potential for conflicts to arise. You owe duties to both clients. All information received by you from your client is confidential and cannot be disclosed without the client’s consent. In the situation you find yourself in if the purchaser will not consent to the information being passed on to the lender the solicitor must cease to act for the Metro Bank and it may well be prudent you to cease to act for the purchaser as well. You can not tell the Metro Bank the reason for termination of the retainer over and above the fact that a conflict has arisen. The fact that you can no longer act should alert even the most somnambulistic of lenders that something is wrong with the borrower and/or purchase. The fact that you have disinstructed yourself should not affect your Metro Bank conveyancing panel status.

You will be aware of the trend in recent years for lenders such as Metro Bank 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 Metro Bank panel. The situation that you find yourself in is where your client’s purchaser has his/her own lawyer and Metro Bank have appointed a separate lawyer to act on their behalf where the new UK Finance Part 3 requirements apply. Section 11.1 of the UK Finance Lenders’ Handbook Part 3 requires Metro Bank’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 Metro Bank. You will no doubt be required to undertake directly to Metro Bank’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 Metro Bank conveyancing panel.

Assuming that your practice in is on the Metro Bank conveyancing panel and you are representing them in relation to a leasehold property, you must report to them if it becomes apparent that the landlord is either absent or insolvent. If Metro Bank are to lend, they may require indemnity insurance. In any event,you will need to check Metro Bank’s specific requirements. Notwithstanding whether Metro Bank will lend in such circumstances you still need to advise the borrower (unless you are acting for Metro Bank alone) as to the risks of buying a property with an insolvent or absentee landlord.

CQS membership is no guarantee to lender panel acceptance. Nevertheless the Council of Mortgage Lenders have indicated that it is likely to become a prerequisite for firms wishing to remain on their approved list of conveyancing solicitors. A number of mortgage companies now use the Conveyancing Quality Scheme accreditation as the starting point for Panel membership such as Santander.

You should get in touch with Metro Bank to obtain standard documents. The The Council of Mortgage Lenders Handbook contains an individual inquiry for lenders to reveal who to contact to obtain standard documents. Metro Bank in their Part 2’s state: It helps to quote your Metro Bank conveyancing panel number.