Mortgage only firms will have a base level payment of £50 per month and 5.99% of adviser turnover.
New members have the ability to negotiate further reductions based on their closeness to the compliance supervisor; track history of good compliance; economies of scale; professional qualifications and other positive factors that both help the member firm and the network to deliver quality advice.
The network can also offer daily commission payments “on demand” from the member firms. So the firms are in full control of their own cash flows.
There is an introductory offer of no monthly fee for the first six months for the first 20 new mortgage member firms.
Virtual Net also has exclusive banking facilities with HSBC for its network firms to use if they wish, including free banking for 12 months (when transferring both business and personal accounts), enhanced interest rate, instant commission receipt and pre-agreed overdraft facilities.
It suggests that Network Data firms may wish to use such services to allow a smooth transition across.
Bill Dudgeon, head of lending services at Virtual Net, says: “The main objective is to grow the mortgage network member numbers to attract 150 firms over the next 2-3 years and build a quality mortgage network that we can all be proud of. We have worked hard to build on the strengths of Virtual Net and launch a new market-leading proposition for mortgage firms.
“Our daily commission payments are already proving very attractive for firms that want to be in control of their cash flow. And with our leading procuration fees and other services such as a wide protection and General Insurance panel we have everything in place.”