The lender told firms on its conveyancing panel last September that they would be removed if they had not received Conveyancing Quality Scheme (CQS) accreditation from The Law Society.
Santander originally required law firms to have completed the process by March 31 but Mortgage Solutions understands that many conveyancing firms are yet to start.
The bank is now giving firms who can prove they have started the application process a late reprieve. These firms will now remain on the panel at the end of the month and will be given a chance to complete their accreditation, however they will be unable to take any new business from Santander until the CQS application is complete.
All firms will be given the chance to complete any business still in the pipeline.
A spokesperson for Santander UK said: “Our position, as regularly communicated to all panel members since September 2012, has always been that firms will lose their panel status if they have not been accredited by 31 March 2013.
“We have worked very closely with The Law Society and to help them and our panel members, we agreed a temporary moratorium based on the following strict criteria.
“If a panel member has submitted their application in a timely fashion and The Law Society consider and advise us that the application is well presented and complete then so long as that panel member proceeds ‘regularly and diligently’ with that application, their panel status will be preserved and they can finish pipeline business to avoid customer detriment until their application is determined.
“They will not however be able to accept new instructions after 31 March 2013 until such time as their application is successfully determined.
“Those applying at the last minute will be given a ‘pending removal’ status. They will be allowed to finish pipeline business to avoid customer detriment but cannot accept any new instructions from Santander until successfully accredited.”
David Gilman, partner in charge of broker-focused conveyancing service, Blacks Connect, said: “Once the Law Society has made an accreditation decision the firms will either stay on the panel, or be booted off.
“Santander announced its policy on panel management months ago so any law firm that really wanted to get CQS accreditation and stay on the panel would have surely applied by now – they’ve had plenty of time.
“In essence, nothing has changed and Santander’s policy’s still applies, albeit slightly delayed for a few law firms.”
Earlier this year Mortgage Solutions reported on a revolt amongst conveyancers who were being removed from lender panels because of small caseloads.
