We have had occasions where Advisers have not declared their Broker Fees on the Initial Disclosure Document , Client Records and to the Network. Failure to disclose your Broker Fees is a serious Breach of Regulatory Requirements in accordance with Regulatory Rules. Broker Fees should not exceed 1% of the loan amount and, if the adviser is looking to charge a fee in excess of this they should seek network approval by way of a phone call/email to their compliance manager or file review team. In all cases where you are charging a Broker Fee please follow the broker Fee Process below.
CHARGING A BROKER FEE PROCESS
- Appropriate Disclosure Document should state amount of Broker Fee and when payable and any refunds if applicable.
- Fee Agreement – All applicants to Sign and Date the Fee Agreement
- KFI – Please ensure the KFI you are presenting to your Client has your Broker Fee Included.
- Mortgage Application – Please declare your Broker Fee on the application form to Lender
All of the above Documents to be attached to the Key.
IDENTITY REQUIREMENTS
Please see the new list of Identity Requirements on the Right Mortgage Adviser website under ‘personal identification’ in the document library. This also includes what ID documents are required by NON-UK Passport holders. You can also download it here.
CERTIFICATION OF DOCUMENTS
Please can you ensure that all Original Documentation is Certified as copies of the original. Please include your Name, Signature and Date.
PRODUCT TRANSFERS – Which lenders provide Applications and Mortgage Offers.
Woolwich/Barclays – Provide both the Application and Mortgage Offers for all product Transfers
Halifax – Do NOT Issue Application form but DO Issue Mortgage Offers
BMS – Provide Application form but Do NOT issue a mortgage Offer