Doug Hall, sales director at 3mc, believed brokers were not hunting for the best submission route once they had completed the advice process, resulting on them missing out on extras which could be beneficial both to themselves and the client.
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He said: “If a broker sources a product, they should also look at whether using a packager, mortgage club or network would be a better submission route. Often, a distributor may well be offering a bigger proc fee which will allow the broker, if they so wish, to refund the valuation fee as well as receive a larger commission.”
Dev Malle, director of mortgage distribution at Personal Touch, said:
“You’ve got to be careful as it has always got to be the best product for the client and we don’t want to change that attitude among brokers.”
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Bob Sturges, director of communications at Money Partners, added:
“It’s an interesting point which sums up the challenges for brokers dealing in a market which offers more choice than ever before. The broker is responsible for the quality of advice so the first duty is to the client. Anything beyond that, such as proc fees, is secondary.”
