What Is a Lender's Solicitors Panel?

If you are buying a property with a mortgage, you may hear your mortgage lender or conveyancer mention a lender’s solicitors panel. But what is a lender’s panel, why does it matter, and what happens if your solicitor is not on your lender’s approved panel?

Understanding mortgage lender solicitor panels is important because choosing the wrong conveyancer can potentially cause delays, additional costs and complications during your property purchase.

In this guide, we explain what a lender’s solicitors panel is, why lenders use them and what you should check before instructing a conveyancer.

What is a lender’s solicitors panel?

A lender’s solicitors panel is a list of law firms and conveyancers that a mortgage lender has approved to act on its behalf in property transactions.

When you take out a mortgage to buy a property, there are two parties with an interest in the legal work:

• You, as the buyer

• Your mortgage lender, which is providing the money

The lender needs to make sure that its legal interests are protected and that the property provides suitable security for the mortgage.

Rather than allowing any solicitor to act for it, a mortgage lender will typically have a panel of approved firms that meet its requirements.

Why do mortgage lenders have solicitor panels?

Mortgage lenders have specific requirements when it comes to conveyancing.

The lender needs its legal representative to check matters relating to the property, title and mortgage.

A lender’s solicitor panel allows the lender to work with firms that have met its criteria.

Panel firms may be required to meet requirements relating to matters such as:

• Professional indemnity insurance

• Experience

• Regulatory status

• Financial stability

• Compliance procedures

• Anti-money laundering procedures

• Conveyancing standards

The exact requirements vary between lenders.

Why does the lender’s panel matter to a buyer?

If you are buying a property with a mortgage, your solicitor may need to act for both you and your lender.

If your chosen conveyancer is not approved by your mortgage lender, this can create a problem.

The lender may require a separate solicitor to act for it.

This can result in:

• Additional legal fees

• Delays

• More communication between solicitors

• Duplication of work

• Potential complications before exchange and completion

In some circumstances, you may need to change conveyancer.

This is why checking panel membership before instructing your solicitor can be extremely important.

What does it mean if a solicitor is “on the panel”?

If a solicitor is on a lender’s panel, it means the lender has approved that firm to act for it in relevant mortgage transactions.

This does not necessarily mean that the solicitor is approved by every mortgage lender.

For example, a firm may be on the panel for one bank or building society but not another.

Panel membership can also change, so it is worth checking with the relevant lender rather than relying on an old list or assumption.

Can my solicitor act if they are not on the lender’s panel?

Possibly, but it depends on the lender and the circumstances.

If your chosen solicitor is not on your lender’s panel, the lender may appoint another solicitor to act on its behalf.

This is sometimes referred to as separate representation.

Having two firms involved can make the transaction more complicated because both sets of solicitors may need to carry out legal work and communicate with each other.

In some cases, the lender may allow your solicitor to apply to join its panel, but there is no guarantee that the application will be successful or completed quickly enough for your transaction.

What is separate representation?

Separate representation is where your solicitor acts for you while another solicitor acts for your mortgage lender.

Normally, when the same firm is approved by the lender, the solicitor can act for both parties.

With separate representation, there are two legal firms involved.

This can mean:

• Additional legal fees

• More communication

• Potential duplication of work

• A longer conveyancing process

Whether separate representation is permitted and how it operates depends on the mortgage lender.

How do I check if my solicitor is on a lender’s panel?

One of the easiest ways to avoid problems is to check panel membership before you formally instruct your conveyancer.

You can:

1. Ask the solicitor directly.

2. Tell them the name of your mortgage lender.

3. Ask them to confirm that they are currently on that lender’s conveyancing panel.

4. Check with your mortgage lender.

5. Confirm the position again if you change mortgage lender during the transaction.

It is important to check the specific lender, rather than simply asking whether the firm is “on a mortgage panel”.

What if I haven’t chosen my mortgage lender yet?

If you have not selected your mortgage lender, you can still choose a conveyancer, but you should consider panel membership when comparing firms.

If you already have a shortlist of mortgage lenders, ask your preferred conveyancer whether they are on those lenders’ panels.

This can help you avoid choosing a solicitor who later turns out not to be approved by your chosen lender.

Does every solicitor belong to every lender’s panel?

No.

There is no single universal mortgage lender panel that applies to all lenders.

Each lender has its own panel and eligibility requirements.

A conveyancing firm may be approved by a number of lenders but not necessarily all of them.

This is why it is important to provide your solicitor with the correct lender details as soon as possible.

Does using a panel solicitor make conveyancing faster?

Being on the lender’s panel can help avoid certain complications, particularly where the solicitor is acting for both the buyer and lender.

However, panel membership does not guarantee that your transaction will be completed within a particular timeframe.

The length of a conveyancing transaction can depend on many factors, including:

• The property

• The chain

• Searches

• Mortgage arrangements

• Leasehold information

• Enquiries

• The lender

• The buyer and seller

• The complexity of the legal title

A panel solicitor can help avoid the specific issue of needing separate representation, but it cannot eliminate every potential source of delay.

What happens if my mortgage lender changes?

If you change your mortgage lender during the purchase, you should tell your solicitor immediately.

Your solicitor may be on the panel for your original lender but not for the new lender.

This could potentially result in the need for additional arrangements or even a change of solicitor.

Before switching mortgage products or lenders, check that your conveyancer can continue to act for the new lender.

Does a lender’s solicitor panel apply to remortgages?

Yes, lender solicitor panels are also relevant to remortgaging.

When you remortgage, your new lender may need legal work to ensure its mortgage is properly registered against the property.

Some lenders have approved panels of conveyancers that can act for them during a remortgage.

Depending on the lender and circumstances, the lender may offer or provide a conveyancing service as part of the remortgage.

What is the difference between a lender’s solicitor and my conveyancer?

In some transactions, the same conveyancer can act for both you and your mortgage lender if they are approved by the lender.

The solicitor has responsibilities to both parties and must comply with the lender’s requirements.

If your solicitor is not on the lender’s panel, the lender may instruct another firm to act for it.

This is why panel membership is an important consideration when choosing a conveyancer.

What should I ask a conveyancer before instructing them?

If you are buying a property with a mortgage, consider asking:

• Are you on my mortgage lender’s approved panel?

• Can you act for both me and my lender?

• Are there any additional fees if you cannot act for the lender?

• What happens if I change mortgage lender?

• Will you notify me if your panel status changes?

• Do you have experience dealing with my particular lender?

Getting clear answers at the beginning can help prevent surprises later.

How to avoid lender panel problems

The easiest way to avoid problems is to check your conveyancer’s panel status before you instruct them.

If you are buying with a mortgage:

1. Choose your mortgage lender or shortlist potential lenders.

2. Find a conveyancer.

3. Tell the conveyancer which lender you are using.

4. Ask them to confirm they are on the lender’s approved panel.

5. Confirm the position with the lender if necessary.

6. Tell your solicitor immediately if your mortgage lender changes.

Taking these simple steps can help avoid unnecessary delays and additional legal costs.

Final thoughts: What is a lender’s solicitors panel?

A lender’s solicitors panel is an approved list of conveyancing firms that a mortgage lender is willing to work with.

For home buyers, checking whether your solicitor is on your mortgage lender’s panel is an important step when choosing a conveyancer.

If your solicitor is approved by your lender, they can usually act for both you and the lender. If they are not, the lender may need separate legal representation, which could lead to additional costs and delays.

If you are buying a property with a mortgage, check panel membership before instructing your conveyancer. It is a small step that can help your property transaction progress more smoothly.

This article provides general information about mortgage lender solicitor panels and residential conveyancing in England and Wales. It is not legal or financial advice. Panel requirements vary between lenders and can change over time. If you are buying or remortgaging a property, speak to your conveyancer and mortgage lender about your individual circumstances.