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The Loans Engine scraps master broker fee

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The Loans Engine is scrapping its master broker fee and replacing it with a single application fee.

The new fee is £295 and will be paid at application stage, after the decision-in-principle is confirmed from the lender but before The Loans Engine begin packaging the case.

Brokers referring cases to The Loans Engine will also be able to charge their client a fee.

A Loans Engine statement says the new model gives flexibility to brokers, networks and clubs but also lets them control client costs.

The Loans Engine says many customers will now now choose to save money by paying the set-up costs themselves rather than adding them to the loan and paying interest on the fee.

The Loans Engine chief executive Ryan McGrath says: “We will give control to the intermediary, network or club, to set their earnings at a level which works for them and is fair to the client.

“We hope to draw in those mortgage intermediaries who may have felt previously disenfranchised from the sector.”

Legal & General Mortgage Club director Jeremy Duncombe says: “Scrapping master broker fees is a bold move by The Loans Engine but one the market certainly needed.

“With reducing rates and charges, there really is no reason for intermediaries not to include second charges as part of their holistic mortgage service to clients.”

Simply Biz Mortgage chief executive Martin Reynolds says: “Fees have always been a contentious area and it is good to see The Loans Engine taking a bold step and moving to this new model.”

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