With immediate effect intermediaries will receive commission of 1 per cent on both initial borrowings and further cash reserve drawdowns made on Standard Life Bank's Freestyle Lifetime Mortgage.
Alan Dring, head of sales at Standard Life Bank, explained that the lender had introduced the new commission structure to reflect the key role played by intermediaries in the prudent sale of lifetime mortgages.
Dring said intermediaries spent considerable time advising clients with lifetime mortgages on factors such as the typical age of borrowers, the need to consider third parties such as solicitors and relatives, and also because of the sensitive nature of the product.
He added that he was committed to working with intermediaries to maintain a careful approach to the sale of lifetime mortgages and to reward those who took time over regulated guidance.
Dring said: “Freestyle Lifetime Mortgage customers will now also only be able to make drawdowns through their financial adviser, ensuring they receive the best possible advice when contemplating drawing down extra funds.
“As lifetime mortgages fall within the new regulated environment Standard Life Bank believes that it is prudent to ensure that intermediaries are involved with all aspects of the drawdown process.”
Rod Murdison, proprietor at Murdison & Browning, said: “This is not the kind of business that walks in through the door very often, it requires contacts and a lot of work; additional commission is welcomed by the broker.”
