The pricing structure is in three tiers:
1) Flat fee per firm – a flat fee of £80 per month will be charged to each firm
2) Fee for additional advisers – in addition to the flat fee, a fee of £40 per month will be charged for each additional mortgage adviser
3) Percentage of turnover – each firm will also pay a monthly fee equivalent to 5% of turnover (turnover = total mortgage commission income)
The aggregate fee charged each month is subject to a minimum of £250 (see example below).
Mortgage Next Managing Director, Martin Maynard, said: “Mortgage Next has a competitive service offering for brokers wishing to become appointed representatives and we now have the infrastructure in place – which includes a team of 24 compliance staff – to ensure our service is both comprehensive and robust.
“Our charging structure is competitively pitched in the market and offers good value for money. Pricing is always a balancing act in which you must reflect the true cost of providing a service, whilst ensuring your tariff stands up to comparison. I think Mortgage Next has got the balance right.”
Brokers requiring further information about Mortgage Next’s services can either visit the companies website at www.mortgagenext.co.uk or phone 01883 333100.
Example:
A firm employing 3 advisers, who complete in total 12 mortgages per month, will pay:
Fee per firm £80
Fee for 2 additional advisers £80
Fee based on percentage of turnover £150
Total monthly fee payable £310
(It is assumed, for illustrative purposes, that each completed mortgage generates commission income of £250. 12 completed loans will therefore generate £3,000 of fee income. This is the ‘turnover’ figure used in the above example).
Professional indemnity insurance cover is not included in the above fees and will be charged in addition. An application fee of £75 + VAT per adviser will also be charged, which will be refunded to firms whose successful applications are submitted before 31st January, 2004. The application fee is negotiable for firms of 5 or more advisers.
