Lloyds told Mortgage Solutions it is important that the solicitors on its panel partner it regularly enough to understand and keep up with its criteria and policy changes.
Lloyds plans to use a ‘risk based’ model that will allow it to assess firms individually.
The group, which includes Lloyds TSB; Halifax; Bank of Scotland and Birmingham Midshires, confirmed it plans to remove firms that have transacted low levels of business on a rolling 12-month period.
Firms will be entitled to carry out pipeline cases’ and the panels will remain open to new applicants, who will have to meet the volume threshold within 12 months of membership.
Letters will be sent to those firms affected during the next month.
A Lloyds spokesperson says: “We haven’t had any feedback on this and are in the early stages. However, anyone with issues may want to talk to us and we are happy to discuss the move and find a solution with each and every firm.”
Law Society spokesman Paul Marsh said he was disappointed by the move, but recognised each client was allowed to choose the firms it instructs.