Commission changes FAQs

We've put together some FAQs regarding our new commission rates for selling our Lifetime Mortgages.

Will this new commission rate be applied to my existing offers?

No. If we've already offered, the commission rate will not change. The changes will only apply to cases that receive an offer from 2nd April 2019.

Can I request a reoffer on the same terms to benefit from the new commission rate?

No. Please don't request a new offer unless there is a genuine customer need.

Is drawdown commission affected?

No.

Does the commission rate increase apply to all your Lifetime Mortgages products?

Yes, with the exception of our Premier Black Flexible and Premier Black Optional Payment product options. For these cases, commission remains payable at 2% of the initial advance. All commission is capped at £10,000 with any amount above the decency limit will be rebated to the customer by way of cashback at completion.

Are the minimum and maximum levels of commission payment affected?

No, there is no change to the minimum and maximum levels of commission.

For our Flexible and Optional Payment Lifetime Mortgages the minimum commission payable on the initial advance is £500 and the maximum is £10,000. Any amount above the decency limit will be rebated to the customer by way of cashback at completion.

For our Income Lifetime Mortgage there is no minimum commission and the maximum is £10,000.

Where I have issued a KFI which had not reached the decency limit threshold of £10,000 but now does, will my customer qualify for a rebate by way of cashback?

Yes they will. You should contact the customer prior to us issuing the offer to make sure that this remains the right advice and they don’t wish to borrow less or switch to a lower LTV product as a result. For example if they want to reduce the initial advance to reflect the increased rebate amount.

If they're switching to another product you'll need to issue a new KFI for that product and confirm the new KFI number with us.

The decency limit threshold of £10,000 has already been reached, and the excess above that is being rebated to the customer by way of cashback. Will this rebate now increase?

Yes it will. You'll need to contact your customer prior to us issuing the offer to make sure that this remains the right advice. They may wish to borrow less or switch to a lower LTV product as a result. For example if they want to reduce the initial advance to reflect the increased rebate amount.

If they're switching to another product you'll need to issue a new KFI and follow our new reoffer process.

Will the sourcing tools reflect these changes?

Yes. The new commission rates will be applied from 2nd April 2019.