| Q1. What is an Appointed Representative (AR)? |
| A. An Appointed Representative is a person or a firm that is able to sell regulated products although they are not authorised in their own right. They can do so because they gain exemption from direct authorisation when another directly authorised firm, known as a Principal, agrees to take responsibility for their activities and conduct. Therefore a prospective Appointed Representative will undergo fitness and propriety checks and will have to follow the rules and procedures as set by the Principal firm. |
| Q2. Who is HomeLoan Partnership? |
| A. HomeLoan Partnership is the trading name of HL Partnership Limited, a company that is independently owned by private investors, all with extensive industry experience. |
| Q3. How much will membership of HomeLoan Partnership cost? |
| A. We take our charge for network services by way of a commission share - a retention. Retention is calculated as a percentage of the chargeable turnover of your firm that is paid through the commission statement. This is on a graduated scale, reducing as turnover increases to reward productivity and underpinned by a minimum monthly retention figure, completely offset by the business that you transact. You can call us to check the retention rate that would be applied to your firm. Retention is charged on procuration fees and commissions but not from broker fees that have been paid to you direct. (See Q8 if your firm has trainees.) |
| Q4. How does this compare with what other networks charge? |
| A. We are very competitive with other networks. Think in terms of value rather than price. Some networks charge flat monthly fees regardless of how large or small your business is. Others also charge a flat fee for every mortgage transacted regardless of the size of the loan. Such fees are likely to attract VAT. We have no fixed network membership fees. We feel our simple approach is both tax efficient and fair to all sizes of business. You only pay according to what you receive in commissions and procuration fees. |
| Q5. How soon will I be paid my Procuration Fee/Commission? |
| A. Subject to an agreed minimum credit balance, fees/commissions will be processed each Monday based on payments received up to the preceding Friday and B.A.C.S. transferred to your account by the following Wednesday. We do not hold monies on account and are passionate about payments on time, every time. |
| Q6. How does the cost structure affect me if my production varies from that used to calculate fees? |
| A. The percentage retained by HomeLoan Partnership will be reviewed regularly based on actual completed business. Adjustments can then be made for the next quarter; there will be no retrospective adjustments. |
| Q7. How will employing more advisers affect the charging structure? |
| A. You will benefit from a decision to grow your business by adding more advisers. As your turnover increases, the percentage network charge will drop. There is a minimum retention figure per adviser but this is aggregated for the firm to respect the fact that some advisers are more productive than others. |
| Q8. Will there be extra costs for supervising trainees? |
| A. Yes. There will be an additional retention of £100 per month plus 2% of fees and commissions generated by trainees until they are assessed as competent with the appropriate qualifications. |
| Q9. Why should I join HomeLoan Partnership? |
| A. HomeLoan Partnership is a well established network that can boast many years experience of running a dedicated network for mortgage professionals. This gives us the advantage of having worked closely with mortgage intermediaries and the regulators, both the MCCB and latterly the FSA. You will have a wide lender panel representative of the whole market that is actively managed to get you the best deals. Unlike the networks owned by insurance companies, you will be able to recommend insurance and protection products from top named providers chosen carefully for their competitive premiums, commissions, integrated software capability and service standards. We believe in offering choice to members, demonstrated in our decision not to restrict you to in-house packaging. |
| Q10. Will HomeLoan Partnership be responsible for PII cover? |
| A. Yes. Professional Indemnity insurance cover will be arranged by HomeLoan Partnership in accordance with FSA requirements. |
| Q11. Will I have to pay extra for this PII? |
| A. Yes. In line with most network propositions, PII insurance premiums (where applicable) are additional to the standard network membership costs. PII is charged at 1% of business turnover, to include broker fees. |
| Q12. Can I continue to use the term 'Independent' as a member of HomeLoan Partnership? |
| A. Yes. By being an AR of HomeLoan Partnership you will have access to all types of mortgages. The Initial Disclosure Document that you will supply as an AR will also give clients the option of paying your fees themselves instead of being remunerated by the lender. This will normally satisfy the definition of 'independent' as stated in the FSA Rules. |
| Q13. Can I only use the lenders on the HomeLoan Partnership panel? |
| A. Yes, however the panel is very broad and in exceptions where you identify a better lender, permission to use a non-panel lender can be obtained from HomeLoan Partnership at no extra cost. |
| Q14. Do you have an approved panel of packagers? |
| A. Yes. The main packager panel includes The Finance Centre, Solent Mortgage Services, Complete, The Business Mortgage Company and Fluent Money. |
| Q15. Do you offer any other services? |
| A. Yes - We call these ancillary services and include wills & trusts, secured loans, commercial loans & services, lead generation, website design & hosting, solicitors referral service, back office technology and many more. Full details can be found within our website. |
| Q16. Who owns the client? |
| A. You always retain ownership of the client unless you choose to sell your client bank to another Appointed Representative of HomeLoan Partnership, when you retire, for example. However, HomeLoan Partnership will have an ongoing regulatory responsibility, as determined by the FSMA (2000). |
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