Chris Cummings, director of AMI, informed Mortgage Introducer that all AMI members who want to benefit from the instalment scheme must submit their applications by the end of the month.
The instalment scheme was launched in May following negotiations between the Small Business Practitioner Panel, the Financial Services Compensation Scheme, trade associations and credit providers.
Overseen by the FSA, an instalment plan by which firms could pay their fees and levies was introduced. Premium Credit Limited was selected to supply the plan which allows the FSA to receive a single payment but offers a facility for firms to spread this cost using payment by instalment.
Cummings said the FSA is issuing fee invoices now but “trickling” them out instead of sending out thousands at once.
He said: “We are keen to bring our members’ attention to the limited time scale in applying for the instalment scheme. AMI members benefit from automatic acceptance without the need for underwriting as well as preferential rates.”
Simon Chalk, mortgage planner at Mortgage Portfolio Services, said he applied for the scheme and thought it was a good offer. He said: “We received our FSA invoice this week and sent paperwork to Premium Credit Limited.
“It’s a simple application, ticking a few boxes and calculating interest. Compared to a mortgage application it is easy.”
Sole broker Roy New agreed it was a welcome addition but added: “A general gripe is having to pay for the privilege of paying by instalment.”
