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Private Label offers brokers bigger fees on tracker loans

Private Label and Verso are paying IFAs an enhanced fee on penalty-free

tracker mortgages to promote free advice for borrowers.

Private Label says the move is a response to the dilemma facing IFAs who

want to recommend trackers but are afraid their clients will not want to

pay fees for advice.

The packager says most borrowers are not prepared to pay a fee, which

means that brokers require enhanced fees to cover the cost of advice.

In partnership with Britannia&#39s intermediary lending arm Verso, Private

Label is offering enhanced fees on both its Freedom and self-certification

trackers.

The fee paid depends on the size of the loan. On a £60,000 loan, the

broker would receive £300 for a Freedom tracker or £550 for a self-cert

loan.

Private Label chairman Stephen Knight says: “Brokers do not want to charge

a fee. With this initiative, they do not need to and the customer gets the

best deal.”

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