The vast majority of domestic conveyancing includes a finance element.

The new Law Society practice rule 6 in relation to acting for lender and borrower is likely to have long-term implications for the market.

Although the present conveyancing market is buoyant, with the recent quarter-point interest rate rise, conveyancers could be forgiven for being a little apprehensive about the future.Two things are certain: the procedure for moving house will be greatly simplified over t he next ten years, and the power of the internet and the registration of all UK property will lead some firms into greater bouts of competitive reductions in their charges.The bulk conveyancing market is likely to become dominated by large firms with badged services, such as Convey Direct and Hammonds Direct.

Slick advertising and sheer market power could push smaller practices out of the market.

The future is bleak for those that do not adapt to the changing market and complement their domestic conveyancing.The two options are estate agencies/property centres and mortgage advice.

The former would need much more capital outlay and there are probably enough existing agents to soak up the market demand.The mortgage optionThe mortgage is the most important element in the majority of transactions, as without it most deals cannot proceed.

Conveyancers already have an in-depth understanding of the legal aspects of a mortgage and most already have an awareness of financial considerations.

The cross-over to offer the complementary service in the vast majority of cases would not therefore involve too much of a sea change.The basics surrounding mortgage advice and arrangements are as follows:-- Advising on mortgages will involve registration and compliance with the Mortgage Code Register of Intermediaries (MCRI).-- Arranging related life products will require a qualified person with retail and branded products authorisation and a category 2 certificate under the Solicitors' Investment Business Rules.-- The life products will require the proper software to prepare quotes and compliance advice letters.The costsThe costs of providing a mortgage service are remarkably cheap.

The main cost will be the qualified person (if brought in from the financial services industry).

However, there is nothing to stop a firm training an existing member to obtain the necessary authorisation of the firm and making the advice part of that person's role within the firm.The information technology required can be obtained on a monthly subscription and is competitively priced.The benefitsAfter the enhanced service to clients, the most important benefit is the financial advantage to the firm.

The average policy linked to a mortgage will generate more in commission than the conveyancing fee.

The additional revenue allows creativity with the cost structures.

It also allows solicitors to be aggressive with firms undercutting to attract work.

With the ability to offset commission against fees, subject to the client's consent, solicitors could reduce the conveyancing fee to zero and still earn more per case than before.

As an alternative to taking commission the solicitor could remit the whole commission to the client and charge a competitive fee for the service.The other benefit is the ability to cross-sell and turn a one-off client into a long-term client.

The client may need additional financial advice.

Solicitors now have the means to earn, while retaining the client's loyalty.One benefit often missed is the way in which cross-selling enlivens the culture of the firm.

A firm which metaphorically has a real spring in its step will come across better to the potential client.Marketing the mortgage serviceThe service's most effective marketing will be done internally, with mortgage and related products being offered to clients as soon as they enquire about conveyancing costs.

The ability to agree with the client to rebate any commission received on the mortgage/life assurance gives a firm the option to undercut those who seek to drive the con veyancing cost down to an unprofitable level.

It is a hard fact that clients respond to the most competitive deal.In order to motivate staff, why not split a proportion of the fees from the transaction against the source's fee target? Where individual or group targets are concerned people are rewarded for their efforts.

This can be effectively run into a bonus scheme based on the target of the individual.The mortgage service in most cases will be attractive to members of staff.

Why not charge them nothing for their mortgage advice and rebate all the commission to them? They will be pleased with the firm and the service will be viewed internally as valuable.

Happy staff make good referral sources.External marketingThe external marketing of the mortgage service should be done with as much force as possible and bearing in mind the guidelines provided by the publicity code.

In most areas solicitors have nothing to do with the mortgage market.

When you are different to everyone else, tell people.

A simple advert in the property section of the local free paper will yield results, and is inexpensive and effective.

More expensive options include the use of web sites, radio advertising and billboard advertising.How to get startedA law firm should sit down and decide the way in which it wishes to enter the market.

There are many different options, allowing all firms from the sole practitioner to the large practice to get involved.

The steps needed would be as follows:-- Draw up the business plan.-- Decide who will be responsible for the advice - internal training or external recruitment?-- Apply for a category 2 investment business certificate.-- Apply for membership of the regulatory body the Mortgage Code Register of Intermediaries (MCRI).-- Apply to be on the mortgage panels of lenders.-- Purchase the IT solutions.-- Decide on a marketing strategy.The need to protect a firm's income from competitors seeking to undercut on conveyancing charges and market changes has never been more acute.

With the best will in the world a mortgage service would not be up and running for at least six months from the decision to proceed being taken.

Now is the right time to consider a move into this market as the need to change to survive becomes a reality.It is also an ideal time to consider getting into financial services because of the changes which are likely to be made to the mortgage market with the establishment of the Financial Services Authority, including the possibility of direct regulation of mortgage advice and arrangement for the first time.