Expertise Gaps Undermine Mortgage Resilience
A critical barrier to achieving true financial and mortgage resilience in the UK is the persistent shortage of specialised expertise within legal support services. Many larger firms delegate conveyancing tasks to paralegals, who may lack the in-depth knowledge needed to handle complex cases. This often leads to misaligned or poorly communicated instructions among clients, advisers, and solicitors, slowing the process and increasing the risk of costly delays.
In pursuit of cost savings, some clients choose solicitors based primarily on low fees. This can result in impersonal, transactional services that operate more like a production line than a tailored legal solution. Combined with high referral fee deductions, solicitors may be left with minimal budgets, sometimes as low as £150 per case. While this may be manageable for straightforward transactions, it becomes unsustainable when complications arise.
A further challenge lies in the lack of broker-friendly solicitor practices. Some firms fail to engage mortgage advisers actively, despite their pivotal role in identifying and resolving emerging issues early in the process. This lack of collaboration often leads to fragmented communication, increased friction, and a diminished client experience.
To build true mortgage process resilience, it’s essential to close these gaps by promoting proactive communication and collaboration across all parties involved. Advisers, in particular, should seek out solicitor partnerships that understand and support their role.
When Legal Mistakes Undermine Financial Resilience
In the world of property transactions and mortgage advice, even the most highly recommended professionals can fall short, putting both client outcomes and financial resilience at risk.
Skilled solicitors often receive glowing recommendations, but over-reliance on reputation can lead to complacency. In one example, a landlord client initially praised a solicitor’s efficiency with portfolio property completions. However, as delays crept in and communication broke down, the praise turned to frustration. The consequence? Expired mortgage offers and repeat valuation fees are all eroding the client’s financial footing.
Another case involved a Buy-to-Let remortgage, where solicitor oversight nearly collapsed the deal. Not only did it take more than three months to process a timeline that fell far below industry standards, but the solicitor also delayed releasing surplus funds to the client by nearly two weeks.
The situation worsened when they mistakenly transferred £270,000 instead of £70,000, failed to repay the original lender, and neglected to obtain the required redemption statement. As a result, the new first charge lender was left without secured protection, jeopardising the entire lending arrangement.
These incidents underscore the critical importance of robust risk management and resilience planning in today’s mortgage landscape. For advisers, this highlights a growing need to shift from relying solely on recommendations to adopting performance-based evaluations when referring legal partners. It also stresses the value of protection planning as part of comprehensive client advice.
For more on how advisers can safeguard clients against financial shocks, explore our guide on Protection and Insurance, or learn how a mortgage network can support advisers with due diligence and compliance frameworks.