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The Lloyds TSB-owned lender came under fire from advisers earlier this year after its new processing system Caseflow struggled under the weight of unprecedented adviser demand as a result of other lenders pulling out of the market.

Alan Lakey, a partner for Hemel Hempstead-based IFA Highclere Financial Services, Derek Frost, an adviser for Epsom-based The Melia Partnership, John Stewart, director of Basildon-based PMI IFA and Paresh Shah, director of West Wickham-based Financial Solutions 2000 Ltd, said they were all seeking compensation from C&G on behalf of their clients.

Mr Lakey said one of his clients had spent nearly three months on the standard variable rate because the application for a remortgage submitted in March had not been completed. He said he would consider no longer referring cases to C&G if he did not see improvements in its service to advisers.

He said: "I will be voting with my feet as opposed to my calculator. There are many people out there who are sick and tired of the poor service."

Mr Frost said he would be submitting a case for compensation on behalf of his client this week.

He said: "I expect C&G will be hit with a raft of compensation claims as many other intermediaries have been affected by the delays."

However, he did acknowledge the lender was trying to make changes to its processing team.

He said: "To be fair at this stage of the game it has responded to all of these complaints by creating regional teams."

Amanda Glover, press officer for C&G, said the lender would look at any customer concerns on a case by case basis and where appropriate, may offer compensation.

However, she said the lender would not be looking to offer any compensation to intermediaries.

Ms Glover said: "The intermediary channel is an important and valued part our business. However, we believe the procuration fee is sufficient payment for the work intermediaries do and we do not, as a matter of policy, offer compensation to intermediaries.

"However, we would look at any customer concerns on a case by case basis and, where appropriate, may offer compensation."

C&G told Mortgage Adviser earlier this month it had merged its underwriting and processing teams in a bid to improve its service to intermediaries.