IFA Commission on Remortgage

VanDeretto

Hi,

I am just about to remortgage and was planning on using my financial advisor to advise on the best deal.

If I take up his offer on the best deal available, can anyone please explain how he gets paid his commission? How much extra is this likely to cost me?

I have been tempted to contact L&C rather than my IFA, mainly because they claim to advise on the best deals for free.


Thanks in advance,
VanDeretto

payless

Your adviser should explain his fees (if any) clearly prior to starting any work. Most lenders pay advisers - some firms will also offer a fee/ rebate service ( a requirement to be called independent)

VanDeretto

Thanks for your prompt reply.

I'll check with my IFA what fee's, if any, are applicable.

If he does charge a fee, is this likely to be paid by the lender? If so, would the lender then in some way, transfer this cost to myself?

ReportInvestor

Some firms offer terms that are available only to intermediaries, not direct - which enables them to still offer good deals while taking their commission.

The loyal mugs are the ones who pay for us rate tarts and our advisers.

dunstonh

IFAs don't do mortgages under IFA rules. They are done under mortgage advisor rules. So an IFA can be at worst single tied for mortgages and still be called an independent financial advisor.

So when dealing with mortgages its worth forgetting the IFA section of the key facts menu and look at the mortgage side of it. That will explain their status for mortgages. (confusing as hell but the FSA thinks its better!)

payless

VanDeretto wrote:

Thanks for your prompt reply.

I'll check with my IFA what fee's, if any, are applicable.

If he does charge a fee, is this likely to be paid by the lender? If so, would the lender then in some way, transfer this cost to myself?

Th e lender will likely pay a fee ( usually no extra on product to you)
If he charges a fee, this will be on top ( he might actually rebate the lenders fee)- just make sure all clear up front

payless

Reporter wrote:

Some firms offer terms that are available only to intermediaries, not direct - which enables them to still offer good deals while taking their commission.

But some lenders also have direct only deals- so requires you do not some research, or find an adviser that will research "all deals" ( not the same as "whole of market" ) this may involve a fee ( and trust that they will)