The Intermediary – July 2026 - Flipbook - Page 12
a fee or is paid through procuration fees. The
conversation should focus less on how the adviser
Beyond the
application
DEREK ADAMS,
SENIOR NATIONAL
ACCOUNT LEAD
AT SKIPTON
BUILDING SOCIETY
is paid and more on the quality of advice, service
and outcomes they deliver.”
That conversation is already beginning to
influence how some firms approach their
charging models.
Gary Melville, business development specialist
for Wales at TAB, says: “We are seeing an increase
in brokers charging a fee based on the complexity
of the deal. I think that is fair enough – every
business model has its place. As advice becomes
more complex and clients expect greater support
throughout the transaction, many firms will
I
continue to review whether their charging model
t is often said that buying a home is one of life's
most stressful experiences. For many would-be
reflects the work involved.”
Phillips believes there is no single right
homeowners, the challenge now starts before
approach to charging, but argues the industry
they even begin house hunting, with rising
still has work to do in communicating the value
property prices and affordability constraints
brokers provide.
making homeownership feel increasingly out of reach.
A YouGov survey commissioned by the Building
Societies Association (BSA) in 2024 found that the
proportion of people who want to buy a home but don't
“Every business model is different, and brokers
will have their own view on their approach to
fees,” he says.
“We all live and breathe this – we know just
believe they will be able to rose from 25% in 2020
how much value brokers deliver to their clients.
to 32% in 2024. That's almost one in three aspiring
We have seen this only recently with the wave of
homeowners who doubt they will ever get on the ladder.
re-prices and product pulls that forced brokers
By working with a broker, borrowers may uncover
to work overtime to get applications submitted,
options they hadn't previously considered, whether that's
rates locked in and to make sure their clients had
around affordability, deposit requirements or alternative
the best possible deal.”
routes to homeownership. Encouragingly, lenders have
introduced a range of innovative solutions in recent
years to help address these challenges.
In many cases, broker involvement can even begin
He adds: “In truth, that is just the tip of the
iceberg. The question is, how good are we at
communicating that value to the general public?
If we can demonstrate this, customers will
long before a property is found, helping prospective
recognise the value of paying for the extensive
buyers understand their borrowing potential and
guidance, expertise and support we provide
whether homeownership is achievable. This early
throughout the process.”
engagement allows brokers to build trust, understand
Whether brokers choose to charge a fee or
their clients' goals and help them navigate the path to
not, industry experts agree the role has evolved
buying a home.
considerably. The challenge now is ensuring the
A broker is also often the only party involved from
profession is recognised, both commercially
the outset through to completion, maintaining regular
and by consumers, for the breadth of expertise
contact with all key stakeholders.
it provides.
Where homeownership isn't immediately achievable,
brokers can also help customers understand the steps
Making the case
they need to take to improve their position in the future
Recognising the value of advice is one thing,
or identify realistic compromises around location,
but persuading first-time buyers to pay for
property type or budget.
it is another. For first-timers already facing
Brokers who view the journey as purely transactional
significant upfront costs – deposits, Stamp Duty,
miss the opportunity to build relationships that can
legal fees – paying a broker’s fee can feel like an
last a lifetime. Maintaining regular communication
added expense. Yet many argue the conversation
throughout the home-buying journey strengthens trust,
should centre less on cost and more on the value
improves the customer experience and supports better
professional advice.
retention and referrals.
For me, the key is helping customers clearly
Michael Grant, head of sales at TAB, explains:
"Some brokers charge fees once they get to certain
understand what they are paying for. The challenge is
points; the offer out stage, for example – or
rarely the fee itself. The challenge is helping customers
on completion – with a smaller fee upfront to
understand the value they receive in return.
gain the client commitment. In my experience,
p
