News In Focus
HBOS redemptions: Society's advice
Members of the profession recently received a communication from HBOS plc advising that they wished mortgage redemptions to take place by electronic means with effect from 1 August 2008. Whilst for reasons of fraud prevention HBOS wish to move towards electronic settlement, such a process does not fit with current conveyancing practice in Scotland.
Accordingly the Society has been in communication with HBOS and we can confirm that so far as the profession in Scotland is concerned, HBOS will not be implementing the requirement to settle mortgage redemptions electronically from 1 August although this will still go ahead in England & Wales.
The Society and HBOS will continue to engage in dialogue regarding the way forward. There is a follow up mailing on this matter scheduled to be issued to solicitors in England & Wales. If any member of the profession in Scotland receives a copy of this communication, we confirm that the policy will not be implemented in Scotland notwithstanding the terms of any such communication which they may receive.