Mortgage advances are at risk when released to conveyancers until the mortgage has been properly registered as a first charge on the property offered as security.
Lenders can lose funds in this high risk period due to conveyancers failing to register a mortgage within search priority periods, or dishonesty by conveyancers and borrowers.
Lenders losses in these situations can be very substantial, and much greater than a technical defect on the title of the property.
Lenders may be concerned about release of funds on a mortgage for the following reasons:
- Operating a very restricted panel of approved conveyancers;
- Fraud intelligence checks revealing alerts;
- Borrowers wishing to instruct a conveyancer who is not on the panel, even if that panel is extensive.
The Fasttrac Monitored Purchase Service can help you manage the risks. As a lender you instruct Fasttrac to protect your interests by monitoring the purchase and taking key steps including the following:
- Reviewing the main elements of the title and title plan;
- Verifying identities including of the conveyancers;
- Reviewing the transaction for problems e.g. unregulated sale and rent back schemes;
- Controlling the money including your mortgage advance and the money due to sellers and sellers lenders;
- Paying the SDLT;
- Holding all the documents necessary to register the purchase and the lender's first charge, before completion;
- Ensuring that the registration is submitted immediately after completion and inside priority periods on searches.
Fasttrac Monitored Purchase Service can give lenders real peace of mind.