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Remortgage delays on high value properties

Journalist: Chris Barry, Newspage contributor

ended 14. May 2025

Most lenders accept Search indemnity insurance when remortgaging as this is quicker and cheaper than applying for full searches. 

HSBC, however, are one of the only lenders who insists on full searches for property values over £1 million. 

In our experience, this can cause clients delays of up to 8 weeks and cost as much as £500 in additional legal fees. 

A client recently applied for a remortgage expecting the release within two weeks only to find the entire process was going to take 10 weeks due to a delayed local authroirty search. 

Is this sensible underwriting by HSBC or an unnecessary burden on homeowners? 

Are you aware of any other lenders who insist on full searches on higher value properties and has it impacted your clients in the past? 

Any views on this, send them across. We’ll leave this alert open until tomorrow at 09:00.

2 responses from the Newspage community

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Editor
Chris Barry
Director at Thomas Legal
There doesn’t seem to be any reason why most lenders are happy with SII and few aren’t. I understand First Direct will accept SII and they are owned by HSBC who won’t. At the very least, clients need be made away of the additional time and cost to proceed with a morning where full searches are required as this may impact their decision to borrow from a particular lender
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Editor
Tony Redondo
Founder at Cosmos Currency Exchange
HSBC’s policy of requiring full searches for remortgages on properties over £1m, unlike lenders accepting search indemnity insurance, aims to balance risk and reward but leans too heavily on caution. It mitigates risks like planning disputes, yet feels excessive for remortgages, causing delays, mirrored by Halifax and Bank of Ireland’s similar stances. While protecting the lender, the burden on clients, with delays and costs, outweighs the benefits, especially as market trends favour efficiency. A more balanced approach, like accepting indemnity insurance with conditions, could better serve homeowners while managing risk.