BM believed the figures reflected the fact that borrowers were increasingly realising the benefits of using intermediaries and were prepared to pay for the support and service they provide. However, BM questioned whether the fees charged should be more consistent.
Over 200 intermediaries were asked: ‘Are clients charged for advice and services?’ with the findings indicating that 22 per cent did not charge fees on any case. While the remaining 78 per cent of respondents did charge fees, the amounts were not set. Only 16 per cent charged the same amount on every case, while 17 per cent charged a different amount on every case. 45 per cent charged fees depending on the case.
Commenting on the findings, Chris Pearson, head of sales and marketing at BM Solutions, said: “With the intermediary sector going from strength-to-strength there is no disputing that brokers should be rewarded for the support and advice they provide. I think the interesting talking point this research prompts is whether there should be a consistent approach to fees within the market.”
Kevin Paterson, managing director of Park Row Mortgages, said: “More mortgage intermediaries are charging fees and this is partly as a result of the increased amount of work involved since Financial Services Authority (FSA) regulation was introduced. I think intermediaries should charge fees, because clients are getting a service that is bonded. But you can’t set one prescriptive fee because each charge should be based on, and commensurate with, the amount of work involved in the case. Having different fees also helps maintain competition in the marketplace as brokers compete to have the lowest fees.”
