David Nicholson, managing director at D&D Consultants Ltd, hit out at solicitors’ attitudes towards the role of the broker in the mortgage process. He said the failure of many solicitors to notify brokers about exchange of contracts or completion could cause problems further down the line.
He said: “Solicitors have become very bad at advising brokers when a mortgage has been completed or exchanged. As a broker, there are often other aspects to consider once the mortgage has been processed, including life, unemployment and buildings and contents insurance policies.
“Going back five years, solicitors would keep the broker informed when policies were going through and when certain elements needed taking care of, but this isn’t the case anymore. There’s less of a link between solicitors and brokers, and now as soon as an offer has been issued, the solicitor seems to forget about the broker and the role they play.”
Nicholson added the gap between completion and notification could sometimes amount to two weeks; a time lapse that could seriously affect the borrower.
“This could affect the borrower as policies may not start on time and could affect elements of the offer. Sooner or later there will be a case of a client dying during that period, and the insurance will not pay out. Brokers and solicitors are equally responsible for the transaction and solicitors need to do more to keep brokers in the loop.”
Isobal Rowley, spokesperson for the Law Society said: “The only duty a solicitor has is to their client. Once a mortgage has completed, it is their duty to tell the client about any insurances they may need. They are not obliged in any way to inform a third party.”
