The scheme, which will give brokers an extra £200 for completions between £150,000 and £299,999, £500 extra for cases between £300,000 and £499,999 and £1,000 for all cases over £500,000, will allow intermediaries to help offer the client additional financial help while at the same time supplementing their own income.
Doug Hall, deputy managing director at 3mc, believed the client was getting a better deal if they were given a lump sum, instead of other bonuses.
“Recent results from a survey undertaken among a number of our supporting brokers revealed that the conversion rates from application to completion were greater on those applications whereby the client had paid for the valuation fee against those who selected a free valuation.
“Recently, one packager had offered a free valuation scheme for a core product from a recognised adverse lender which paid a proc fee of 1.1 per cent. Had the broker selected the same core lender product via 3mc, the proc fee paid for an advance of £200,000 would have been £600 more. Once the cost of the valuation fee had been deducted, the net gain would have been £221, excluding the additional amount of £200 under the 3mc scheme. The intermediary could have offered a refund of the valuation fee and have secured better commercial terms for their business.”
James Carter, principal of Independent James, commented: “The client will still need guidance, but at the end of the day, anything where you get something back for the client and you are still fairly remunerated has to be a good thing.”
Get the daily news delivered to your inbox
Find the latest industry jobs
