How are Alpha Independent Mortgages Paid?

The Financial Services industry in the UK is regulated by the Financial Services Authority, this means that they are the watch dog for the industry, which includes most types of mortgages.

The Financial Services Authority have legislated that any Financial services company who claims to be ‘independent’ must give their potential clients the choice as to how they are paid.

Alpha Independent Mortgages provide ‘independent’ financial advice and as a result we will give you, our client, the choice as to how we are paid.

Most lenders will pay us a commission when we introduce business to them, at the point of us making a recommendation to you, we will ensure that you are aware of the amount of commission that we will be paid, it will be stated clearly on the Key Facts Illustration that we will give you. Typically it will be between 0.3% and 0.75%.

The 2 choices that you have are:

	You can pay us a fee, which will be 0.75% of the mortgage amount that you apply for and we will refund the commission that the lender pays us, to you on completion of your mortgage.
	You do not pay us a fee and we will retain the commission that we receive from the lender as our payment for arranging your mortgage.

Our minimum expected income for arranging a mortgage is £850. Typically a lender would pay a commission to Alpha Independent Mortgages 0.4% of the amount of the loan. For example on a mortgage of £200,000 this would be £800. In this example we would charge you a fee to cover the difference between £800 and £850 which is £50, on completion. If you choose to pay us a fee and have us refund the commission to you, we still expect a minimum of £850 for the advice and will charge you the difference between 0.75% of the mortgage and £850 if the fee is less.

You will notice that on various pages of this web site as well as on our literature, the following statement is made to ensure that you are aware of the choice that you have and as a summary of the explanation above:

You can choose how we are paid: pay a fee, usually 0.75% of the loan amount or we can accept commission from the lender.

Your home may be repossessed if you do not keep up repayments on your mortgage.