How we are paid
On receiving an enquiry an advising firm will invite a prospective client to make an appointment for a preliminary meeting, this would normally be at their own home or office address. The purpose of the meeting is firstly to establish whether the advising firm is able to assist with the prospective clients needs and objectives and secondly to discuss how they would be paid for their services should they be instructed to proceed. There is no charge for this preliminary meeting and no obligation on either side.
After the initial free consultation, the advising firm will agree with you whether we are paid out of the cost of any financial product you buy (commission), or you pay the advising firm a fee and we refund any commission, or a combination of the two. The advising firm will always tell you about any commission they earn, and it will be taken into account in working out our fee.
Commission is paid to an IFA firm by a provider, usually an insurance company or an investment house for the successful placing of business. The commission is included within the providers normal product charges, so there is nothing you need to pay the advising firm in addition. The amount of commission is based on a percentage of the premiums payable or sums invested.
Fees will usually be based on time spent and evaluated at a rate per hour calculated to recover the advising firms costs. Fees attract an additional VAT charge whereas commissions, under current legislation, do not.
If you ask us to arrange a mortgage for you we can be paid by either commission or a fee. Please see the page relating to each particular advising firm for details of what their charges might be.
Whether the advising firm takes their remuneration by way of commission or fees will be a matter of discussion and agreement, and no charges for fees will be made without prior notification in writing.
If you ask any of our advising firms to arrange a mortgage for you we can be paid by either commission or a fee - please see the webpage for that firm for details regarding their typical fee options.
Your home may be repossessed if you do not keep up repayments on your mortgage.