It will pay introducing firms or individuals a percentage of the loan amount for any client that they recommend to Chase De Vere Mortgage Management, not only on their first transaction but on every transaction that the client conducts for the rest of their lives.
The commission will typically be between 15% and 25% of Chase De Vere's gross earnings on each deal - typically 1% - which will usually mean a maximum payment of £250 to the introducer on a £100,000 mortgage, or £625 on our average £250,000 mortgage.
Not only that but we will pay the introducer for trsansactions carried out by friends or family that the client recommends to us. This will mean that the introducer will earn from every transaction that their clients make, plus every transaction made by "first generation" referrals too, and for the rest of their lives. We think this is entirely unique and can keep commission payments flowing for years on transactions carried out by people that the introducer has never even met.
Simon Tyler of Chase De Vere Mortgage Management, the broker, says: "We are inviting businesses to become introducers with us. We know that there are businesses out there - mainly IFAs, accountants and solicitors - that have not bothered applying for mortgage regulatory authorisation but for whom it would be useful to have a solid, well respected company to introduce to - not to mention earn the extra revenue."
"There will also be firms that are registered but may be finding it is not worth their time or effort staying that way."
"This extra commission is not being taken from the client but comes as a result of Chase De Vere Mortgage Management reducing its margins. It's as simple as that. We have been trialling this with a couple of introducers and it has worked well and generates enormous loyalty, so we are rolling it out nationally at the same time as we are expanding our regional presence with more brokers on the ground all over the country."
"The challenge we face is that we are a growing business so we are looking for market share. What matters to us is volume, and this seems to be a sensible way of achieving our goals."
"We will be a perfect partnership for many businesses because we do not sell investments so will not conflict with any of the products that they sell. It is intended to create the ultimate symbiotic business relationship."
