IFA advice - should it be free?

artisan_2

I have speaking to a few IFA looking to get an overview of how BTL mortages fit in the bigger scheme of things.

I thought that IFA would be able to offers fees or commision style offerings. However a couple have stated that they would want £150 before offering advice - is this becoming the norm?

dunstonh

There is an increasing move towards fees with IFAs and it is one that is backed by many. The FSA state that to use the term independent you must offer the fee option and you can be fees exclusively. If you dont offer fees, you cannot use the term independent.

Of course, the IFA designation only covers investment class business and has nothing to do with mortgages, which has its own rules which differ from investment class in a number of ways.

Many of the IFAs I know have dropped or are dropping mortgage business or are dropping IFA status to become mortgage advisers.

MortgageMamma

It very much depends on the individual company and adviser you are talking to.

You might be better finding a dedicated whole of market mortgage broker who is fee's free if you feel uncomfortable paying a fee. Sometimes brokers and IFA's charge an upfront fee because they fear having their valuable time wasted. If you are confident enough in one particular adviser you could offer to pay a Deposit for their services, say £150 which would be refunded to you upon completion.