Halifax announce 1% limit on broker fees
It has been nearly a year since the FCA launched Consumer Duty and whilst all lenders have looked closely at broker fees, they are now starting to put firm rules in place on what they deem acceptable.
Halifax has announced that from the 1st of June 2024, they will no longer accept cases where the broker fee is above their limit.
This limit has been set at 1% or £1,500, whichever is higher.
As an example, for a loan of £100,000, there would be a maximum fee of £1,500, and for a loan of £200,000, a maximum fee of £2,000 would be in place.
Read the full article HERE.
Lenders Pulling Rates
Lenders have been pulling many of their rates again lately, so we just wanted to advise everyone of our rate pull process.
If you are a BLUE status adviser, you are still required to send your cases to Compliance before you submit your application, even if the rate is being pulled.
However, to avoid any client detriment, Compliance will only conduct a quick ‘sense check’ of the case.
This means that instead of a full case check, Compliance will review the case to ensure the Fact-Find has been completed and the Minimum standard documents are on the case. This will usually be done within an hour of you submitting the case and once done, we will advise you to submit the case. Following this, a full case check will be conducted.
To submit your case for file checking, please email Compliance@Connectmortgages.co.uk.
Why the Packaged Route?
Did you know your case is more likely to be accepted if you choose the packaged route?
Lender feedback has told us that 84% of cases packaged by us are accepted, however, this is reduced to 73% if it is submitted by the broker themselves.
This itself is a good reason to choose the packaged route, our Case Management Team have built a great relationship and understanding of our packaged lenders. Many years of dealing with these lenders have given the team the knowledge of what they will want to see on a case, meaning that there are less delays in the process and your case can complete quicker. The Case Management team will also take all the hassle away by dealing with any queries and provide you with regular updates on how the case is progressing. So, you just have to sit back and wait for your case to complete.
We also have direct access to these lenders during our regular BDM visits where the team will discuss ongoing cases and will resolve many issues there and then.
On top of all of this, you will also receive higher commission rates when you choose the packaged route.
We package for many lenders, some of them are:
- Precise
- Kent Reliance
- Interbay
- Fleet Mortgages
- Family Building Society
- Hampshire Trust Bank
- The Mortgage Lender
- Pepper Money
- Foundation Home Loans
For a full list of lenders we package for, please see the Commission table HERE
As always, if you would like any assistance, please contact the Compliance Team, who will be happy to help.
Regards
Alan Baldwin
Director of Compliance