Last week saw the welcome re-introduction of our Fixed Price Remortgage products. The deals, which are available at £199, £249 or £299 are popular with introducers mainly because, when used in conjunction with a lender’s Cashback in place of a ‘free-legal’ package, they enable the introducer to earn additional income whilst providing a better solution for the client.
Let’s take the current market-leading deal on offer from the Nationwide; you have a choice of ‘free legals’ or a £250 Cashback. Recommend the ‘free legals’ and the client will only have to pay for any non-standard expenses, the solicitor will only act on behalf of the lender and you won’t earn from it. On the other hand, recommend the £250 Cashback in place of the ‘free-legals’ and instruct a £249 Fixed Price remortgage. This solution ought to be cost-neutral for the client but now they have a solicitor who is acting on behalf of both lender and borrower and you get to earn a referral fee of up to £90.