How we are paid
The Initial Disclosure Document, as available on this site, explains the way we work and how we are paid for different aspects of business. In order to clarify our way of working see the summary below of how we are paid.
Mortgages:
for example: first time buyers: movers: investment (buy to let): lifetime mortgages for the retired
Before advice and recommendation we will agree how we will be paid if we proceed to a successful application. We are paid usually by a combination of a fee plus a commission from the lender ( If a fee is charged it is usually £250) or sometimes just by commission only from the lender. This will be a matter of discussion and no fees will be charged without prior confirmation in writing.
General Insurances:
for example: life insurance: critical illness insurance: income and mortgage protection: private medical insurance: building and contents insurance
This type of business is usually paid by commission only. This commission depends if our clients are happy to proceed to application after advice and recommendation and then as a result business is completed.
Commission is paid to the financial advisers' firm by a provider, for the successful placing of business. The commission is included within the providers normal product charges, so there is nothing you need to pay us in addition. The amount of commission, both initial and ongoing, is based on a percentage of the premiums payable.
Investment based and Pension business:
for example: personal/stakeholder pensions: collective investments: life bonds: ISAs: whole of life insurance
Before advice and recommendation we will ensure that you fully understand how we are paid for any financial product you buy. The industry currently offers a choice of fee, commission or a combination of both.
We usually work based on commission and this explains how commission is paid. You would be fully informed on the sums involved before proceeding to applicaiton.
*Commission is paid to the financial advisers' firm by a provider, usually an insurance company or an investment house, for the successful placing of business. The commission is included within the providers' normal product charges, so there is nothing you need to pay us in addition. The amount of commission is based on a percentage of the premiums payable or sums invested.
Our practice does not usually work based on fees. This explains how fees work and if this best suits you then we may not be the best practice for you to work within.
**Fees will usually be based on time spent and evaluated at a rate per hour calculated to cover our costs. Fees can attract an additional VAT charge (if applicable) whereas commissions, under current legislation, do not.
NB - No commission will be taken without full disclosure to you and discussion.
Your home may be repossessed if you do not keep up repayments on your mortgage.