Your Mortgage says charging set fees works

A new fee-charging model is working well – and in some cases better – for advisers.

Your Mortgage Decisions, a mortgage broking firm, introduced uniform-fee charging at the start of 2010.

It implemented the new structure in accordance with the FSA’s Treating Customers Fairly initiative, which sets out principles for ensuring all customers receive the same high standard of service and are treated equally. It includes ensuring that a common fee-charging structure is used, where fees are charged.

Now, having worked within the new structure throughout 2010, Your Mortgage Decisions says it has seen no reduction in fee income compared to the previous 12 months. It says it has even led to an improvement in some advisers’ remuneration levels, due to them finding it easier to work within a defined structure.

Advisers work on a fee-charging basis, undertaking a holistic lifestyle fact-find over a two-appointment process to ensure a tailor-made solution is delivered to each and every client.

Martin Wade, director at Your Mortgage Decisions, commented: “We have always encouraged our advisers to charge a fee, as we feel the quality of advice and service given sufficiently justifies this.

“However, with regulation changing, we felt it made sense to bring some uniformity to our fee structure both in terms of the regulatory angle and to make sure fees are even more transparent for clients. 

“This current policy was introduced at the start of the year and has worked well since. 

“Fee-charging was once a hotly contested debate among mortgage intermediaries, but it has become increasingly evident that many have already ingrained this into their business models. 

“A poll by RBS Intermediary Partners found that only 4% of attendees at a recent forum event in Sunderland ruled out ever charging a fee. This not only illustrates the nature of the market but also shows that intermediaries have clearly recognised the need to change their operating business models and are looking to diversify. 

“Nevertheless, intermediaries still need a strong level of support in order to do this, which is why we remain committed to helping firms through any transitional phase by providing an extensive training and development facility and mentoring them through the whole process.”

Your Mortgage Decisions is now actively looking to recruit additional advisers.