How we are paid
On receiving an enquiry we invite a prospective client to come to our offices for a preliminary meeting. The purpose of the meeting is firstly to establish whether we are able to assist with the prospective client’s needs and objectives and secondly to discuss how we would be paid for our services should we be instructed to proceed.
There is no charge for this preliminary meeting and no obligation on either side.
After the initial free consultation, we will agree with you whether you pay us a fee, or we are paid out of the cost of any financial product you buy (commission). We will always tell you about any commission we earn, and it will be taken into account in working out our fee.
Commission is paid to an IFA firm by a provider, usually an insurance company or an investment house for the successful placing of business. The commission is included within the provider’s 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.
Fees will usually be based on time spent and evaluated at a rate per hour calculated to recover our costs. Fees attract an additional VAT charge whereas commissions, under current legislation, do not.
Whether we take our remuneration by way of commission or fees will be a matter of discussion and agreement, and no charges for fees will be made without prior notification in writing.
If you ask us to arrange a mortgage for you, we can be paid by either commission or a fee, or both. If we are to charge you a fee, this will usually be 1% of the loan amount, payable on the issue of the mortgage offer. We will tell you how much the totoal fee will be before you apply for a mortgage.
If we charge you a fee and this is paid, and your regulated mortgage does not go ahead, you will receive a full refund if the lender recommended rejects your application on submission There will be no refund under any other circumstances.
Your home may be repossessed if you do not keep up repayments on your mortgage.