The warning comes following recent research which revealed that lenders’ continuing to cut their solicitor panels was the number one concern for conveyancing firms.
For the past few years lenders have systematically cut the number of conveyancing firms they will deal with, meaning that many local and family solicitors are unable to deal with borrowers’ conveyancing needs because they have not maintained their position on the panel.
CAL believes that lenders will continue to adopt this practice only allowing specialist conveyancing firms to remain on the panel if they can continue to meet quality standards and deal with significant volume.
CAL believes this greatly impacts on the choice of conveyancing firm open to borrowers however advisers and brokers can provide a valuable service to their clients by ensuring they do not attempt to place their business with ineligible firms.
Brokers should ensure their clients do not waste their time and efforts, and instead recommend a specialist firm that can provide a quality service at low cost and can work for the widest spread of lenders in the market.
Harpal Singh, Managing Director of Conveyancing Alliance Ltd, commented:
“The conveyancing market is changing rapidly and the recent research shows how quickly lenders in particular are opting for specialists in their field rather than keeping their panels open to as many solicitor firms as possible.
"The real focus now is on quality and volume, which is why many of the old school family firms are being cut from panels in favour of the specialist conveyancers. Advisers and brokers can play an important role in making their clients aware of these facts and ensuring that time is not wasted in attempting to use firms which are no longer on many lender panels.
"Using distributors like CAL will provide peace of mind to both the broker and the client that they are using firms which meet the highest standards and are on the panels of every available lender in the marketplace.
"Clearly, when conveyancing firms themselves are worried about this issue it makes sense to use specialist professionals to ensure the client does not attempt to walk down a legal path that is already blocked.
"Panel culling is a process that lenders will continue to operate and we will see many more solicitor firms being squeezed off panel; therefore it makes sense for advisers to keep up to date with such changes by using a specialist in their field.”
