Mortgage intermediaries are exposed to embarrassment in front of their clients when lenders indiscriminately change their procuration fees, says Mortgage Portfolio Services mortgage planner Simon Chalk.Chalk says significant changes in payments not only go against the initial KFI seen by the client but also result in the client being overbilled or underbilled by the intermediary, creating consumer confusion. In a recent application with the Halifax, Chalk says his fee was reduced from the minimum fee stated in September of £150 to £70 when the mortgage reached the completion phase. A KFI must disclose to the client all fees, commissions and earnings. Procuration fees, which intermediaries are required to input manually, are often estimates which have to be within reason and as accurate as possible. Halifax says intermediaries are paid based on completions and not applications and the fee can change accordingly. Chalk says: “The basis of a KFI is to be accurate for the client. We should get paid exactly what is displayed on the KFI so we can be sure we have disclosed the correct fee. This is the principle maintained within MCOB on disclosure.”
There has been a lot of talk about the positive impact on the self-invested personal pension market of the simplification proposals, particularly the opportunities arising from the new investment freedoms. However, far less has been said about the increasingly restrictive impact of the governing rules on protected rights.
Jubilee Pictures EIS
The Personal Range Individual Personal Pension
Progress in the relationship between IFAs and the FSA has been a case of one step forward and two steps back, Aifa director general David Severn told Money Marketing roadshow delegates last week.
Paul Casson, manager of the Artemis Pan-European Absolute Return Fund, explains why he likes Irish housebuilders but is shorting banks – and how one Spanish TV company is going against media trends. Click here to read more
News and expert analysis straight to your inboxSign up
Latest from Money Marketing
Support service provider SimplyBiz has signed a third new deal for defined benefit transfer advice work after its original partner pulled out of the marketplace. In an email to members seen by Money Marketing, compliance director Gary Kershaw apologises for any inconvenience caused by Crowborough-based advice firm CFPML’s decision to exit the DB transfer marketplace. […]
Providing relevant information is essential, as is only requesting what you need
The Budget will lay out Government plans to help build 300,000 new homes a year, according to Chancellor Philip Hammond. The plans will include fasttracking developments with planning permission. Hammond said the Government would use “powers of state” to get homes built on these sites, according to the BBC. The Government will also unveil plans to […]