When introducing a case to CommercialLoanoptions.co.uk, intermediaries will now have the option to charge a broker fee as normal or waive the fee completely on business done on its primary lending panel, rather than have it automatically added to the mortgage. The company explained that with growing interest being shown by traditional intermediaries, the commercial mortgage market is set to be one of the growth areas in 2007.
Andy Moody, managing director of Loanoptions.co.uk, commented: "From research we have done, our intermediaries wanted to have the option over whether they wanted a broker fee added to the deal, rather than have it automatically added by the packager.
“This is absolutely right. Many mortgage intermediaries feel that they are already earning enough from our market leading procuration fees. So now they have total flexibility and unlike many of our competitors, CommercialLoanoptions.co.uk does not automatically add a broker fee."
He added: " The industry is not formally regulated by the Financial Services Authority and it is important that we do everything we can to ensure that fees are transparent and justifiable. With this initiative, Loanoptions.co.uk is helping intermediaries stay abreast of TCF (Treating Customers Fairly).”
However, Greg Pognowski, senior consultant at Ample Financial Services who refers commercial business himself said he cannot imagine that any broker would waive their fees.
He said: “Clients expect to pay fees, I cannot see how waiving fees would be relevant to the market. If intermediaries who refer business waive there fees there will be no incentive to refer those clients.”
