Mortgages  

Complete FS recommits to 'lowest' master broker fee

Complete FS recommits to 'lowest' master broker fee

Complete FS has recommitted itself to what it claims may be the lowest master broker fee in the second charge market.

The lender has recommitted itself to a master broker fee of £199, regardless of the case size, and restated its commitment to a choice of fee structures.

It announced the news in an email to introducers as it celebrated its 25th anniversary of providing its services to the intermediary sector.

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Damian Cain, director at Complete FS, said one of the most often asked questions concerned brokers’ unease at the fees being charged in relation to those for first mortgages.

He said: "Second charge lending is growing because there are strong reasons, in certain cases, that many clients are better off with a second charge than a remortgage.

"However, in my opinion one of the major factors that is slowing the take up of secured loans is the understandable concern that advisers have at what they see as the high fees, often up to 10 per cent of the loan, being charged by some packagers or master brokers.

"At Complete we think it’s important to offer choice and we do this by letting the adviser offer a fees paid option with a master broker fee of £199 or a fees free option with a limited master broker fee of 4 per cent."

He added: "At Complete FS, we are eliminating that cost barrier and would urge advisers to look again at second charge loans. Broker fees need never again be a reason for not recommending a secured loan."

Mr Cain said the high fees charged by some master brokers stop many brokers from considering them as a viable option for clients looking to raise capital.

Alan Chan, director and chartered financial planner at London-based IFS Wealth & Pensions, said: "From a pure cost perspective, it appears to be very competitive particularly as the case size gets larger.

"However, we prefer to use a firm where they're responsible for the whole advice process and the liability of the advice rests with them. So, we may consider Complete FS if this is also part of their offering.

"As with any commercial relationship we’d need to conduct a bit of due diligence on them first. Essentially, we want to understand more about how they handle each case and their research process as we want to be sure our client is getting the best advice."