Drawdown commission changes FAQs

We’ve put together some FAQs regarding our new drawdown commission rates.

Will this new drawdown 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 21st August 2019.

Will this change be applied to new customers?

The 1.5% commission rate will only apply when it’s a new customer taking a drawdown after the implementation date on the 21st August. Existing customers and their subsequent drawdown applications will be paid at the previous commission rate applied when the customer secured their loan.

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

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

Will commission for further advances be affected?


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

Yes, 1.5% on all new drawdowns.

Please note that there is no drawdown facility available on our Income Lifetime Mortgage product.

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. The overall maximum is £10,000 including drawdown. The exceeding balance will be rebated to the customer as cashback.

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

The commission cap 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. The overall maximum is £10,000 including drawdown. The exceeding balance will be rebated to the customer as cashback.

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 are switching to another product you will 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 21st August 2019.