HSBC has changed its answer on electronic signatures at section 3.1.6a of its UK Finance Mortgage Lenders’ Handbook Part 2 requirements. The previous answer was “No”. The replacement accepts Qualified Electronic Signatures (QES), subject to HM Land Registry’s practice guidance and use of a specified HSBC mortgage document.
For conveyancers, the important detail is the qualification attached to the new “Yes”: the signing method and document must meet the stated requirements.
What does HSBC’s new answer say?
Section 3.1.6a asks: “Does the lender accept digital and/ or electronic signatures?”
HSBC’s replacement answer reads:
Yes – Qualified Electronic Signatures (QES) that meet HM Land Registry practice guidance is acceptable. You must use the mortgage deed template HSBC UK Mortgage Deed MD1600F – QES R Series, which can be obtained from LMS Lender Documents.
The answer identifies two requirements: a QES process meeting HM Land Registry’s guidance and use of the HSBC UK Mortgage Deed MD1600F – QES R Series template obtained from LMS Lender Documents.
A qualified electronic signature is a specific signing method
The new wording should not be read as general approval for every form of electronic signature. It expressly refers to Qualified Electronic Signatures.
HM Land Registry’s Practice Guide 82 on electronic signatures distinguishes QES from other electronic signing methods. Its QES section explains the relevant legal framework and requirements for documents used to effect registrable dispositions.
A signature collected through an electronic platform should not be assumed to be QES simply because the document was signed online. Check the actual service and process against the applicable requirements.
Use the specified HSBC QES mortgage template
HSBC names a particular document: HSBC UK Mortgage Deed MD1600F – QES R Series. The answer directs conveyancers to obtain it from LMS Lender Documents.
Before arranging signature, check that the document selected is the named QES version. Do not assume that an ordinary mortgage deed held in the firm’s precedent bank can be uploaded to an electronic signing platform and used under this instruction.
The document and signing process need to be considered together. HM Land Registry’s QES guidance explains that the relevant electronic documents have particular requirements, including how they are signed and when they take effect.
What should conveyancers check on an HSBC file?
Before using the new route, a practical review should include:
- Current instructions: check HSBC’s applicable Part 2 answer alongside the mortgage offer and any additional instructions.
- Correct document: obtain the MD1600F – QES R Series template from LMS Lender Documents.
- Signing process: establish that the proposed service provides QES and satisfies the applicable HM Land Registry requirements.
- Document preparation: check the details and signing arrangements before sending the document to the borrower.
- File evidence: retain the relevant document, signing records and evidence supporting the process used.
- Uncertainty: resolve any question about the document or proposed process before proceeding.
These are practical review points. The lender’s instructions, document requirements and current registration guidance remain the sources to apply to the transaction.
Review procedures for live matters
A firm whose checklist still records HSBC’s answer as “No” should review that entry. Equally, changing the checklist to an unqualified “Yes” would lose the conditions contained in the replacement answer.
Consider whether staff instructions identify the QES route, the required HSBC template and the checks needed before signature. Review live matters where the signing arrangements have not yet been settled, rather than assuming the change requires every existing transaction to switch methods.
Our earlier article on what Van Halen can teach conveyancers about reading lender instructions explains why the detail within an answer matters as much as its opening word.
For the wider procedural framework, see our article on drafting a CQS Dealing with Lenders Policy.
What did HSBC require on an earlier transaction?
The movement from “No” to conditional acceptance illustrates why today’s lender instructions cannot establish the wording applicable to an older file.
If a review concerns an earlier HSBC mortgage, identify the lender entity, relevant date and instructions applicable to the decision being examined. Consider those records alongside the mortgage offer, correspondence and signed document.
The HSBC page in the Lexsure Lender Archive provides access to historical Part 2 records covering HSBC Bank plc and HSBC UK Bank plc in England and Wales. For an electronic-signature enquiry, use the full Part 2 record rather than assuming there is a dedicated topic filter.
Our guide to historical HSBC conveyancing requirements explains why the correct lender identity and date matter when reviewing an earlier transaction.
Reviewing an older HSBC mortgage file?
Check the historical Part 2 wording recorded for the relevant date. HSBC’s current acceptance of QES does not establish what its instructions said when an earlier mortgage document was signed.