IFA Fees

dunstonh

I think in the main fees are totally unnecessary

I disagree.

If you are in a cheap area for housing, a mortgage may only be £70,000. I know from discussions with advisers locally that in our area £50k is around average.

If you take the typical 0.3% commission on £50k then its only £150. Are you telling me that £150 is fair remuneration for the level of work you are doing?

However, if going by fee, my opinion is that you shouldnt take the commission on top of it. You should either refund it or offset it against the fee. A cap and collar on the fee should exist as well so you dont waste your time with small mortgages earning you less than your costs but equally you dont stitch up those with big mortgages.

AndyWallace

Mr_helpful wrote: »

I think in the main fees are totally unnecessary

It depends on the individual circumstances.

1. Advertising

Professional image branding, presentation folders etc or half dozen sheets of A4 stuffed in an envelope.

2. Preparation

Receive enquiry, initial questionnaire, book appointment, confirm appointment to adviser and client. Drive to client address (maybe up to 60 miles).

3. Appointment Time

Banter, cups of tea / coffee, Fact Find, initial source (is this product really available? etc) Drive home.

4. research, AIP & Prep.

Check availability of product, produce AIP (get a binding decision on Adverse!!!!!!!) Prep - assemble documents to presentation standard. Confirm 2nd appointment. Drive to appointment.

5. Appointment 2

Present details of recommendation, explain criteria, product etc. Answer questions. Obtain permission to proceed. Complete application obtain supporting documentation. Drive home.

6. Administration

Submit to lender, liaise as necessary with all parties.

7. Expenses Etc.

Advertising, Presentation Folders, Letterheads, Phone Calls, Petrol, Wear & Tear on car, Postage costs, Premises, Gas, Electric, Rates, Water, Furniture, Repairs & so on. Staff salaries.

8. Fees.

PI Insurance. FSA Levy. FOS etc. Compliance. Software. Publications.

9. Non selling appointments

A £1,000 fee may equate to £700 with lossed sales.

A £300 proc fee doesn't cover the above unless you are home based or mortgages are just an additional revenue stream supported by the more lucrative insurance and pensions sales.

I'm not slurring any brokers here, I'm merely highlighting the fact that if you want a more comprehensive and personal service you are likely to be charged a fee for that.

Andy.

MortgageMamma

How many times have we had the fees debate now ive lost count - didnt we go through all this with Conrad?

JoeK_3

MortgageMamma wrote: »

Andy, so at the risk of sounding completely unprofessional, kiss my @-rse.

MortgageMamma, you didn't give me that option last night when we had a difference of opinion. LOL

I think we all have our own business model to work from and a home based low cost adviser can certainly get away with no fees being charged (certainly if you try to work smart, like Mr Helpful.) Although I don't know what the FSA would think about a one appointment mortgage sale.

Certainly the cost of sales have to be taken into consideration and I know that MortgageMamma will still be working at midnight somtimes to satisfy her workload. Me, I would prefer to work less hours but earn the same as her.

JoeK

MortgageMamma

Mortgagemammas company is just 1 month old though - I might well work until midnight but I'm glad I do, because one day due to my hard work like yuo Joe I will be busy enough to take on some advisers AND be able to give them leads. I just want to create something good for myself, who knows, one day my business model may change and I may be disappointed with my profits as fee's free, but for now thats how its going to stay - because I want to prove a point, that you CAN offer a good quality non commission biased service without charging a fee. As a person, despite being quick to bite I am equally as quick to forgive and build bridges, I am one of the nicest and most giving individuals you could ever meet and hopefully that shines through in my business.

MM

Ps Joe, believe me, its not worth kissing, kicking maybe but I guess one good thing about getting your @-rse kicked is it means you are in front ;-)

The_nightmare_returns

All your fees are a rip off. What do you really do most of you charge more than my brief and he is far more use than any of you will ever be for that sort of money

AndyWallace

The_nightmare_returns wrote: »

What do you really do most of you charge more than my brief and he is far more use than any of you will ever be for that sort of money

What makes you think briefs are worth their money? most of them have to get a little book of law out to answer a question.

Mr_helpful

We are more up to date we get out our laptops

MortgageMamma

The_nightmare_returns wrote: »

All your fees are a rip off. What do you really do most of you charge more than my brief and he is far more use than any of you will ever be for that sort of money

I wish I had some clever briefs that could be ripped off

At least then when I talk out of my @-rse it will be articulate

JoeK_3

The_nightmare_returns wrote: »

All your fees are a rip off. What do you really do most of you charge more than my brief and he is far more use than any of you will ever be for that sort of money

What's all this about?

Has an adviser run over your cat?

What a profound statement you have managed to come up with.

What is your brief anyway?

This thread is for mature people who can hold a balanced conversation.

Would you mind moving on please.

JoeK