A study released this week by Smoove highlighted how important the choice of conveyancer is for homebuyers, as well as how often they feel they make the wrong decision.
The research found that around one in five movers (19 per cent) would choose a different legal firm if they had their time again, while more than a quarter (26 per cent) were dissatisfied by the experience.
Brokers told Mortgage Solutions that helping clients to understand what sets apart a good conveyancer is crucial, though there were diverse views on how hands-on a broker should be in helping their client select a legal firm.
Educating clients on conveyancing
Jo Payne, mortgage broker at Mesa Financial, said that she looks to help clients understand what they should be looking for from conveyancers, and will obtain quotes on the client’s behalf from a panel manager, but leave it up to them to decide how to proceed.
She continued: “On the residential purchase side of things, a good, responsive conveyancer is hard to find. We are finding transactions taking longer than ever to get to completion due to the lack of communication from conveyancers.
Kylie-Ann Gatecliffe, director at KAG Financial, explained that clients should know the various options available to them, why some are cheaper than others, and what the broker feels works best based on their own experience.
This means steering customers away from free legal offers on remortgages as much as possible.
Gatecliffe added: “When it comes to purchases we work closely with a solicitor, we don’t receive a penny for referring to her – we simply refer to her because we believe she is the best and we know our clients will be happy.
“There is nothing worse than a stressed client that can’t get hold of their solicitor for updates, or to solve a problem. So knowing we work with someone who has the same ethos as us when it comes to the client being put first, and communication being key makes the whole journey a much better experience for all parties involved.”
Doing your (Consumer) Duty
The conveyancer is “integral” to the successful completion of any mortgage, so advisers should guide their clients when selecting one, according to Rob Gill, managing director of Altura Finance.
He added: “Indeed, the focus of Consumer Duty on avoiding foreseeable harm only strengthens the argument for advisers to stress the need for a competent legal service.
Gill said that his firm employs a select panel of trusted solicitors which it is happy to recommend for purchase business. “For remortgages, we will use cashback where available, then help the client select a solicitor from a panel manager such as Smoove,” he continued.
‘A good service just cannot be offered’
However, Jane King, mortgage adviser at Ash Ridge Private Finance, said that she is wary of recommending solicitors. She said that some of the large firms are “so inefficient, that in the event of bad service I do not want it to reflect badly on me”.
King suggested that competition within the conveyancing sector meant that prices had been shaved “to the point where a good service just cannot be offered”.
She continued: “I think buyers should buy more on service standards and less on cost however until the industry is seen in a different light, I think price will continue to be what drives clients to conveyancing firms, so it is a vicious circle.”
Building a relationship with conveyancers
Payne argued it was “extremely important” for intermediaries to have a good relationship with conveyancers, as it helps with the management of the entire transaction.
She added: “Upon a conveyancer being instructed, we do try to touch base early doors to try build that relationship, as we are all working towards a successful end result.”
Alastair Hoyne, CEO at Finanze, said that his firm has an in-house ‘seconded’ law firm, BWL Legal, as he wanted clients to be able to work with skilled solicitors.
He added: “We have direct access to a client relationship manager who manages our client engagement and onboarding process, utilising industry leading technology solutions to speed up the process. We also receive dedicated legal resources to Finanze clients to accelerate legal processes for a faster turnaround.”
The choice of conveyancer can dictate whether a deal completes in eight weeks or 18, argued Gindy Mathoon, owner of Create Finance.
He said this meant it was vital for brokers to work with a handful of different conveyancers to ensure the chosen legal firm was never overly swamped with instructions and able to help.
Mathoon added: “It’s important we regularly review the conveyancer panel to ensure service is still on point and they completing conveyancing work quickly – especially if you are recommending that service, the last thing a broker wants to deal with is a conveyancer complaint.”
