As a mortgage adviser, your role has always had the potential to extend far beyond simply securing property finance for your clients, and certainly since the introduction of Consumer Duty, this appears to be a much more explicit anticipation from the regulator.
I have read a number of commentators on this very issue, highlighting how the FCA is using Consumer Duty specifically for those consumers who are unlikely to see any other adviser through their lifetimes, bar the one they use for their mortgage, and how this has shaped thinking about how those advisers can/should ‘pick off’ more of the client needs, rather than simply focusing on just the mortgage transaction.
Where once this ability to move in other advisory directions, to source products and services to meet other wants and needs, was left to the adviser/firm themselves, now there is certainly a regulatory expectation that, at the very least, these wants and needs will be discussed, and clients will be signposted in the right advisory direction, if the adviser themselves can’t or won’t offer recommendations in these areas.
We’ve always strongly argued that, for a large number of clients, conveyancing wants and needs fit very neatly into these ancillary areas that advisers/firms should be offering. Even without a Consumer Duty, that would have remained the case, and you might well argue that given some of the issues clients are struggling with when it comes to conveyancing, it has become even more important they can rely on professional advice in order to secure the conveyancing services they need from specialists in this work.
At present, I would say there are three major issues that consumers face when it comes to conveyancing – delays, complexity, and costs – and therefore advisers’ proactive participation in this space is going to be increasingly invaluable to help clients navigate these challenges. So, why are these issues of such concern recently?
Firstly, consider the issue of delays in the conveyancing process, a problem that has become all too common in recent years.
There’s no disputing that conveyancing takes longer now than perhaps it has ever done. We have a relatively small number of highly specialist, what I call, 24/7 conveyancers working on cases, but at the same time we have thousands upon thousands of other legal firms who are either merely dabbling, or are less inclined to put significant resource into this part of their business.
This leads to something of a two, even three, tier system, but one where the top tier can often only work as quickly as the bottom tier, if they are for example, acting on behalf of others active in a chain of sales/purchases. That leads to bottlenecks, communication breakdown, chains working at a snail’s pace, all of the above, which ultimately may lead to very sluggish responses and prolonged transaction times.
As a mortgage adviser, you can play a crucial role in mitigating these delays by recommending reliable conveyancers with proven track records. By connecting your clients with conveyancers who are known for their efficiency and communication, you help them avoid the pitfalls of working with under-resourced or less responsive firms.
Secondly, we have the far greater complexity that comes with today’s conveyancing process. A huge hurdle to overcome, particularly for those entirely new to the buying process but also those who might have gone through multiple purchases/sales. Look at the huge problems we have had with leasehold, check up on what is happening with the Building Safety Act, review any aspect of the conveyancing process and in recent years, conveyancers are expected to do more.
However, as a starter for ten, your expertise as a mortgage adviser can allow you to demystify these complexities for your clients. By explaining key concepts in layman’s terms and guiding them through the necessary steps, you empower them to make informed decisions. Plus you can recommend conveyancing firms that you know are on top of all these complexities, have invested in their tech/staff/resources to deal with this, and are able to get on with cases quickly.
Finally, of course, cost is another area where your involvement can make a significant difference. Hidden fees and unexpected costs are common complaints among clients who handle their conveyancing independently. These costs can include additional charges for services such as simultaneous exchange and completion or fees for document procurement that the client did not anticipate.
As a mortgage adviser, you can use a platform like Broker Conveyancing to source on a number of key metrics, including cost, and you can help your clients avoid fee surprises by providing a clear, upfront breakdown of potential conveyancing costs. You can also recommend conveyancers who are transparent about their fees and who do not charge higher rates for standard services. This level of financial clarity not only helps your clients budget more effectively but also builds trust in your advisory role.
Therefore, there are clear internal and external reasons for advisers to be heavily involved in the conveyancing firm decision. By recommending reliable conveyancers, overseeing the process to prevent delays, simplifying complex legal and financial aspects, and ensuring cost transparency, you provide your clients with the support they need to navigate this challenging landscape.
Your involvement not only enhances the efficiency and effectiveness of the conveyancing process but should add considerable value to your overall service, reinforcing your position as a trusted adviser in the eyes of your clients.
Mark Tosetti is chief executive officer of Broker Conveyancing
