Remuneration for arranging mortgages

There are a number of ways in which we may be remunerated for arranging mortgages, and which is the most appropriate will depend on the circumstances. For example, while in many cases the commission on an associated life or pensions contract may be the easiest method, in some cases it may be that no such contract is required, and remuneration must be sought through an alternative method. The most common methods are as follows:

(a) Commission: Advisers or Lenders earn commission from a life policy or pension contract where one is used to repay mortgage;

(b) Arrangement fee: Some advisers will work for a set fee, agreed in advance;

(c) Introduction fee: Some lenders will pay your adviser a fee for the mortgage. This must be declared in advance.