Mortgage News
60% charge fees
The majority of brokers have already started charging fees to their clients, according to a poll carried out at the Royal Bank of Scotland Intermediary Partners (RBS IP) Forum in Sunderland this week.
The survey showed 60% of the 250 attending intermediaries revealed they had adopted a fee-charging model fees for their business. The survey also showed a further 22% were considering introducing fee charging. Only 4% said they would never charge a fee.
Steve Carruthers, head of corporate accounts at RBS IP, said the results showed that intermediaries have clearly recognised the need to change their operating business models and diversify.
He added: “We are committed to supporting our business partners through this transitional phase by investigating diversification opportunities with them and providing them with additional help to get into new markets with practical marketing guidance.”
Grenville Turner, group chief executive at Countrywide, said it was encouraging that so many brokers had considered fees due to potential changes which may be introduced by the Retail Distribution Review (RDR).
He added: “I would applaud those businesses which have moved to a fee charging model because for many, it is the only way that they will make the economics work for their businesses.”
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Martin Reynolds, development director at PMS, said brokers had earned the right to use a fee charging model as they provided quality advice to clients.
He added: “The examinations are getting harder and qualifications are more stringent so brokers should charge for the advice and the experience they have gained.”