The Conveyancing Alliance estimated that brokers who didn’t offer recommendations were missing out on an average of £150 to £200 per mortgage case.
Brokers said they were not involved in conveyancing because:
- they had a lack of confidence in selling the product and, in particular, in recommending a solicitor when they had never done this before;
- the process was deemed too complicated with not enough reward for the work involved;
- clients were assumed to be picking their own solicitors and did not need the broker’s advice; and
- they had never been asked by a client for a conveyancing referral.
“This is not just about the added income to be made, although this is obviously appealing, but it is also the case that those involved in the transaction have much more control over the whole purchase/remortgage process and can successfully manage the client’s expectations because of this.
“Many brokers feel they are not in a position to offer such recommendations however we believe with some hard work and focus, plus the support of a quality distributor like ourselves, many more practices could be benefiting from the sector.
“In terms of income considerations, it’s certainly fair to say that no lenders are raising their procuration fees at the moment and the likelihood is that fees are going to fall further. Therefore, on an average mortgage case brokers can add a not insignificant £150 to £200 to their overall income. As a percentage of the procuration fee this makes a noticeable difference.
“We fully accept that some brokers find the products perplexing and overly complicated which is why we have worked to ensure that our most recent products are transparent and easy for both the broker and client to understand. It also helps when they are market-leading in terms of price. We believe we can help any broker who is looking to increase their income via conveyancing recommendations and would urge any firm interested in developing their proposition in this area to contact us immediately.”
