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Why not introduce a tighter cap on broker remuneration? – Star Letter 01/07/2022

  • 01/07/2022
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Why not introduce a tighter cap on broker remuneration? – Star Letter 01/07/2022
Each week Mortgage Solutions and its sister title, Specialist Lending Solutions, pick the top comments from our readers.

Paul Smulovitch responded to the article: Nature of mortgage broker role increases risk of burnout ‒ analysis

He said: “Excellent article and highlights the problems the smaller self-employed brokers face. Offering service and value to clients in an industry where if a deal doesn’t complete then we don’t get paid is a unique problem most people don’t see or understand, and adds to the stress and worry of the job.”

Paul Barnden also commented: “Great article and sums up the last two years of my life. I’m working on changes and need to factor in some ‘me time’ to my life. We can only do our best and sometimes acknowledging that can help, it certainly did for me. Wishing my fellow brokers, good health, happiness and prosperity.”

Tighter broker renumeration

Leel de Silva weighed in, saying: “I think FCA (Financial Conduct Authority) have realised there are many agents tied to, or have a too close an arrangement with, providers and are not independent enough. Although they have mentioned about product design and fees, what are they going to do about it?”
“Why not introduce a tighter cap on remuneration?” he continued. “Procuration fees to advisers are far too high compared to a standard mortgage, as well as lamentably long early-redemption penalties. If FCA set better rules on both, the ER (equity release) market will become much more competitive with providers having to compete with better rates.”

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