Alexander Hall mortgage brokers says it will have to offer a fee-based advice option for its customers to secure its independent status despite its no-fee stance.
Chief operating officer Andy Pratt says its no-fee status has been threatened by the FSA's guidelines because brokers must give clients the opportunity to pay a fee if they still want to maintain their independence.
The London firm says it is working on how the option will work.
Pratt says the proposal is to charge a fee at the start of the consult-ation with the client and then reimburse the client if the mortgage is not completed.
Alexander Hall will also have to pay any comm-ission back to the client if the case does complete. Either way, Pratt says it will be at a financial cost to the firm.
Pratt says: “This ruins our position as a no-fee provider, something we are well known for and is promoted on our website and in our advertising.”