Conveyancing: 400-plus practices sign up to lender scheme and pay unspecified referral fees

Less than a month after the UK's largest mortgage provider launched a fixed-fee conveyancing service, the Halifax has more than 400 firms on its legal panel and is still receiving applications from solicitors who want to join, even though they will have to pay referral fees for the work.


Clients are charged on a 'no sale, no fee' basis and the legal fees depend on the value of the property, ranging from £299 for a property valued at less than £50,000, to £1,750 for properties worth £2 million. The firms pay an undisclosed referral fee to the Halifax.


The service is open to both customers and non-customers, who are referred to one of the Halifax's panel firms depending on where they live. When they register, they are given a named contact at the firm who will carry out the work. The home movers will be able to track the progress of their move on-line and receive updates by text, e-mail or letter.


Such services from the Halifax and other mortgage providers, including Abbey, Britannia and Skipton, have been seen by some as a precursor to them offering legal services directly to the public when the rules change to allow them, but a Halifax spokesman told the Gazette it has no plans to do that. He said: 'We are a financial services provider; it makes sense for us to work in partnership with the legal community. We provide more of an introduction service.'


Paul Marsh, chairman of the Law Society's conveyancing and land law committee, said the fees charged by the Halifax seemed higher than the rates charged by most high street conveyancing firms.


He questioned whether it was in the public interest for a mortgage lender to have a financial interest in the conveyancing process.


John Heller, senior partner of Hammonds Direct, one of the firms on the Halifax panel, said he saw no such dilemma and added: 'There is room for more people, but the key thing is quality of service.'