Mortgage brokers have called for the free legal services offered by some lenders to up their game after one solicitor missed two remortgage deadlines set by a lender.
A number of intermediaries have criticised the varying standards of customer service clients can receive when dealing with free legal services delegated by lenders, with one broker describing some clients are treated as "numbers on a database".
One adviser based in Surrey, who wishes to remain anonymous, said often she will speak with several different appointed solicitors for one client in a process she said “lacks accountability”.
She said on a recent occasion, in a case described as a simple buy-to-let remortgage for a client aged more than 70-years-old, the appointed solicitor missed two submission deadlines despite her numerous efforts to contact the legal firm and chase the case.
She said: "The solicitors missed the original deadline, which the bank had already emphasised could not be extended, and neither the client nor I could make contact to speak to the case manager despite lodging a complaint.
"We then begged the lender for a second extended two-week deadline, which was granted - but the case manager would not believe me when I specified the two week time limit, so this deadline was also missed with no communication from the legal team."
The adviser said that while the lender did not accept any responsibility for the legal service, they did offer help in extending the deadline a third time.
She added: "If you can get the right person at the other end to take ownership then free legals can be a great service, but often that is not always the case - if any case deviates from standard there does not seem to be a procedure in place to deal with it and the case manager can just ignore it."
Stuart Gregory, adviser and managing director at Lentune Mortgage Consultancy, said it is the lack of consistency between some firms and poor communication that causes problems.
He said: "There is a balance to be struck between lenders finding the cheapest deal they can and pushing down on costs, without this having a detrimental effect on the customer service."
Mr Gregory said he has experienced free legal companies where the solicitors fully engage with brokers throughout the legal process and provide tracking access to the case - but he said there are also examples of firms that cut both clients and brokers out of the process, with an overwhelming lack of dialogue.
He said: "Sometimes the point of contact at the legal firm will change frequently - it can be very frustrating for the client, and it is their experience which takes precedence above all else.
"Whilst the free legal process remains fairly sound, I have known poor communication on the solicitor's part to hold up the mortgage process."
Mr Gregory said that if brokers were guaranteed automatic updates when a case progresses, it would significantly improve the free legal service and avoid having to guess the client’s status.
Brokers complained to FTAdviser about free legals just four months after trade body the Association of Mortgage Intermediaries (Ami) told lenders to reconsider their offering of free legals.
Eight out of 10 (82 per cent) brokers surveyed by Ami said the service delivered by 'free legal firms' is worse in comparison to a customer’s own choice of solicitor or conveyancer.
The nation's biggest building society reintroduced the service at the start of this year, while continuing to offer a cashback alternative.
rachel.addison@ft.com
