UK Finance will no longer proceed with plans to charge conveyancers £50 to access the Mortgage Lenders’ Handbook, following a widespread backlash from the industry and what conveyancing bodies said were “frantic” behind-the-scenes discussions.
“Following further engagement with our members and users of the Mortgage Lenders’ Handbook, we have decided to retain the current approach of providing free access for conveyancers for the foreseeable future. We are continuing the work to launch the new and improved handbook in early March as planned,” the trade association for the banking and financial sector said in a statement on Friday.
Last week, UK Finance had said it would “continue to work closely with the Law Societies, conveyancers and our members during the initial rollout to assess the approach to charging.”
On Friday, the organisation confirmed the feedback it had received had resulted in a ‘recalibration’ of the proposed charging structure. In an email to Rob Hailstone, founder of the conveyancing body Bold Legal Group, UK Finance director of mortgages Charles Roes wrote:
“Further to our email sent earlier this week (27th January), I wanted to share with you an extract of a letter we sent to the Law Societies of England & Wales, Scotland, and Northern Ireland this morning.
“Following further engagement with our members, feedback from your members and wider stakeholders, we have decided to recalibrate the charging structure for our enhanced, more interactive and secure Handbook, continuing the current free access for conveyancers (with user accounts) for the foreseeable future.
“We continue to plan to launch the new platform on 2 March, with the existing handbook discontinued on the weekend of 28 February. We are sure that your members will welcome this decision and look forward to meeting soon to demonstrate the platform and discuss any further queries that you might have.”
The Law Society of England and Wales quickly commended UK Finance for engaging with its members and acting swiftly. “We are delighted that UK Finance has listened to the concerns of the Law Society and other UK law societies and decided to drop their proposal to charge conveyancers a fee to use the Mortgage Lenders’ Handbook for the foreseeable future,” Law Society president Mark Evans said.
“We commend UK Finance for reacting swiftly to the strength of opposition against the proposal to introduce a charge, including from the Law Society on behalf of our members.
“We will now work with UK Finance to support conveyancers as the new system is implemented on 2 March.”
Beth Rudolf, director of delivery at The Conveyancing Association, welcomed the announcement and praised the united response from the sector. “After working with other trade and representative bodies on this issue, the CA is pleased to hear that UK Finance has decided not to go ahead with its planned charging structure for conveyancing firms,” she said.
“We outlined the negative impact this would have had for many stakeholders, including UK Finance lenders themselves, and we are delighted to hear this decision has been overturned.
It was always the wrong decision to charge conveyancers to pay a subscription fee to access the lender’s instructions on the Handbook, and it is positive to see UK Finance has realised this as well.
“This shows what can be achieved when the sector works together.”
The Society of Licensed Conveyancers also praised the united approach. Chair Simon Law said:
“The Society of Licensed Conveyancers welcomes UK Finance’s decision to revise its position and confirm that conveyancers will not be charged to access the Mortgage Lenders’ Handbook. This outcome demonstrates the strength and impact of a united profession.”
CILEX said its members will also be relieved at the swift decision, adding:
“We’re grateful to them for listening. We now look forward to working with them as the new handbook is implemented.”
3 responses
Thank goodness for the Conveyancing Task Force and tge Property Lawyers Alliance who voiced their opposition to this change.
Great news, however, it wasn’t just the Law Society and Local Law Societies, a lot of work by a number of others has gone on behind the scenes. It was a team effort.
If you’re going to completely capitulate the best way to do it is quickly, completely and without trying to justify your previous position. At least they got that bit right.