Second charge master broker Positive overhauls fee structure

  • 10/05/2016
  • 0
Second charge master broker Positive overhauls fee structure
Positive Lending has become the latest master broker to launch a flat fee for directly authorised intermediaries on all residential second charge loans, with the aim of growing its introducer base.

Positive is the second packager to do so in as many days, following yesterday’s announcement from Complete FS, and has set the flat fee set at £995.

The new approach will see the intermediary receive 100% of the procuration fee and the flat fee applies to all Positive exclusive and semi-exclusive products.

Chris Fairfax, managing director at Positive, said this model signifies the future for packagers who want to compete in the market.

“Because fees can now be charged directly to consumers and brokers can charge higher fees for larger loans, we believed a new approach was needed that meant that the same fee applied to all loans for the sake of fairness and transparency,” said Fairfax.

“We exclusively rely on intermediaries so it was important that we could offer a competitive package because we have to compete with potential clients going direct to brokers or lenders. The market is changing and the financial implications were the most important thing to consider if we were going to be involved going forward. We now pay all procuration fees to the introducer and they retain all of the broker fee so we believe this will help us to grow a wider introducer base.”

He said that second charge lending is the largest market within Positive’s offering and to stay in the market, other master brokers will need to follow suit.

“Over the last few weeks we’ve been testing our revolutionary proposition with key partners and the response has been overwhelming,” said Fairfax.

“Yes, we have reduced the amount we can earn from each residential secured loan we arrange but, as a business, we are already benefitting from our competitive proposition; which is truly better for both the intermediary and their customer.”

Alex Smith, senior mortgage and insurance adviser at Capricorn Financial said: “Any move to make fees more transparent and fairer for the customer are to be welcomed.”


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