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How we are paid.
We are paid in several ways-
1.For mortgage advice you can choose how we are paid, pay a fee of usually £500, or we can accept commission from the lender. The amount of this
payment shall be disclosed to you at the outset if it is more than £250. Please
note that the amount does not affect the rate that you receive neither is it
added to your mortgage or paid in any way by you. It is a low cost way of the
lender ensuring that they can attract new customers without relying on them
walking through their doors.
2. We are paid commission by the
insurance company for any protection affected by you. This amount can be clawed
back from us by the insurance company if you do not keep up the premium payments
for a between 24 and 48 months depending on the companies rules. Because of this
we will ask you to sign a fee agreement which states that you will pay a fee of
£295 to us if you cancel the policy within the clawback period.
3. We do not like to charge you a fee
because we are receiving payments from the above sources for arranging your new
mortgage however, if you decided that you only require a mortgage from us and no
protection then we will charge you a one off fee of just £295 on completion of
the loan. This covers our costs and ensures that we can continue to give quality
advice and services to our clients. The amount is less than you pay a solicitor
and far less than you pay in interest to the bank or building society. The
protection policies referred to above only include life cover, critical illness
cover and income protection not buildings and contents or redundancy
cover.
4. We may also charge a fee
where it is a particularly tricky to find a mortgage for you, for example you
may have a very poor credit history or you may have difficulty proving your
income. If this fee applies to you we will make you fully aware from the
outset. The maximum fee will be £495 unlike some mortgage brokers who will
charge up to 2% of the mortgage. Our opinion is that the fee should be charged
on the amount of work involved rather that the size of the mortgage.
Please do not hesitate to ask if you are unsure
of what fees you will need to pay as we try to keep our fee structure as
straight forward as possible to avoid any nasty surprises.
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