Flexible fees on secured loans launch

Sarah Davidson

September 19, 2012

Currently many secured loan packagers charge clients a fixed fee often between 10% and 12.5% of the total loan.

But Access 4 Finance has decided to scrap fixed fees and allow introducing brokers to negotiate what to charge their clients based on affordability and resource used in each case.

As long as the fee is commercially sensible Access 4 Finance will consider charging clients less than many other packagers.

It effectively means brokers will have a say in their commission levels.

Access 4 Finance Director Scott Thorpe said: “Since we launched into the introducer market over six weeks ago, I decided my company needed to do something different from the normal introducer.

“We have decided to go against the grain and make this truly an introducer’s market with the promise that we will deal with each case on an individual basis and let the introducer choose the fee associated with each case – as long as it makes commercial sense for us.”

In each case Access 4 Finance will discuss the costing directly with the introducer.

In some cases the brokerage may need a valuation to be carried out, which may cost around £150, but if a full valuation is not needed a Hometrack automated valuation model will be done instead, costing around £20.

Thorpe added: “As long as the overheads are covered, the fee is pretty much down to the introducer. He/she may choose a big fee if they have put a lot of work into a case and seen the clients on various occasions.

“Another scenario may see an introducer wanting to remortgage the client within 12 months, so they may not want them to pay big fees for a 12 month loan.”

Broker Jon Lord of Metro Finance said: “We’re delighted Access 4 Finance has decided to help mortgage brokers whose clients are looking for a secured loan but are put off by astronomical fees. Scott looks at each case for us on an individual basis.”

Back in July Access 4 Finance started to pay introducers 50% of total income generated including commission after the true cost has been deducted.

Sign up to our daily email