Standard Life to pay commission on lifetime drawdowns
From November 1 intermediaries will receive commission of 1% on both initial borrowings and
further Cash Reserve drawdowns made on Standard Life Bank's FreestyleÒ Lifetime Mortgage.
Alan Dring, Standard Life Bank Head of Sales, said: “Standard Life Bank has introduced this new commission structure to reflect the key role played by intermediaries in the prudent sale of Lifetime mortgages.
“Intermediaries spend considerable time advising clients with lifetime mortgages, as a consequence of factors such as the typical age of clients, the need to consider third parties such as solicitors and relatives, and also because of the nature of the product.”
Alan continued: “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.
“We are committed to working with intermediaries to maintain a careful approach to the sale of lifetime mortgages and to reward them for the time it takes to give regulated guidance”.