IFAs / Fees

Feb 25, 2004 2 Replies
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We have now spoken to two Independant Financial Advisors and have been told that we need to pay a "brokerage" type fee on completion of signing for a mortgage. Both explained why in a reasonable manner, yet I was under the impression that IFAs were supposed to only get the commission from the mortgage lender.



What is the general situation? What sort of proportion of IFAs charge a fee? We don't want to have to wait for appointments and then listen for hours on end before finding out that they charge...


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R

It's not a question of 'supposed to'. There's no law here. Some lenders (most) pay the IFA, some (Britannia for example) don't. The amount paid is not necessarily the same between lenders. But some IFAs might want a fee on top and should tell the client.

Dunno. But will the IFA get some other remuneration via, for example, a life policy?

Ask them when you book the appointment.

Rob Graham

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D

When I was an IFA, I would normally charge about 1% of the loan (up to 2% for "difficult" cases), less any commission received from 3rd parties (lenders, insurance companies etc).

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