Complete FS is axing master broker fees and moving to a flat application fee structure.
The packager is now charging an upfront fee of £199, along with lenders’ valuation fees and disbursements.
Complete FS director Tony Salentino says high master broker fees are one of the main reasons why advisers are reluctant to adopt second charge loans over the remortgage alternative.
A Complete statement says moving to the sort of system used in the first charge market will improve transparency and remove a major barrier to more brokers referring second charge business.
Salentino says: “The options we offer are designed to ensure that advisers have a clear choice to offer clients and also decide how much they want to take as a broker fee.”
Shawbrook Bank sales and operations director Maeve Ward says, “It’s great to see Complete FS leading the way in education as well as addressing one of the main reasons why brokers have avoided second charges in the past, namely the fees.
“Now that seconds are regulated in exactly the same way as first charge mortgages and fees are allowed to be charged upfront, fees have started to come down.”
Complete FS will be running an event at Southampton Football Club on 19 May to help brokers do more second charge business.