Access 4 Finance will pay its introducers 50% of the total income generated including commission after the true cost has been deducted.
Scott Thorpe, director of Access 4 Finance, said: “Having spent the last few years dealing with brokers closely they have always been concerned about the deductions from there commission. Some high profile brokers state an average processing cost is in the region of £500-£600 plus which doesn’t help the secured loan markets reputation when the average is more nearer £275.
“This can also be a lot lower with some of the lenders working off AMV reports or not needing a BSQ as the client is clean and has 12 months credit history showing on their credit report.
“Therefore we have decided to make things transparent which we hope will encourage brokers to look at secured loans as a viable option to a remortgage especially with the low rates on offer via the likes of Nemo Personal Finance and Shawbrook Bank.”
A typical example of a secured loan through Access 4 Finance would be shown as the following.
• Loan Amount: £22,000
• Broker Fee 10% £2,200
• Commission 1.5% £330
• Total Income Generate £2530
Cost examples
An average valuation fee for a property of £150,001 - £200,000 is £175 inclusive of VAT.
An average BSQ Cost is in the region of £100 therefore total deductions are = £275
Total commission: £1127.50
