Mortgage broker terms of business template
Mortgage broker terms of business set out the terms on which a mortgage adviser gives a client advice and arranges a mortgage: which lenders they use, how they are paid, and how to complain. An authorised broker firm, or its appointed representative, completes one with each new client at the start of the relationship.
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What changes each time
21 values. Everything else is your wording, kept exactly.
The firm
- Firm name, address and contact
- Company number
- FCA reference number
- Principal firm's name and reference number, if an appointed representative
The client and adviser
- Client full name(s) and address
- Adviser name
- Date
The mortgage service
- Whole of market or panel
- Lenders or panel size and link
- Types of mortgage advised on
Fees and commission
- Broker fee
- Percentage of loan and example
- When each fee is payable
- Whether it is refundable
- Commission from the lender
Insurance
- Insurance types advised on
- Insurers offered
Complaints and information
- Complaints contact name or role and address
- Electronic ID check provider
- Privacy notice link
- Signatories and dates
The rules it usually needs
Written in plain English when the template is set up.
- Only when…
“Include the company number if the firm is a company.”
The firm line shows its registration.
- One of several wordings
“The firm is authorised and regulated by the FCA, or is an appointed representative of a principal firm.”
The regulatory statement gives the right references.
- One of several wordings
“The firm offers the whole of the market, or a panel of lenders.”
Clause 1 states which, and lists the panel if limited.
- Only when…
“Include the direct-only deals wording if relevant.”
The whole-of-market statement notes that deals available only direct from a lender are excluded.
- Only when…
“Include the buy-to-let note if relevant.”
The scope says some buy-to-let mortgages are not regulated by the FCA.
- One of several wordings
“There is no fee for advice, or a broker fee as a fixed amount or percentage of the loan.”
Clause 2 shows which.
- Once for each item
“Add a row for each stage at which a fee is payable.”
The fee table lists the amount and whether it is refundable.
- One of several wordings
“Commission from the lender is in addition to any fee, or means no fee is charged because of it.”
The commission wording follows.
- Only when…
“Include the insurance section if the firm also advises on protection.”
Clause 3 describes the range of insurers offered.
- Only when…
“Include the electronic identity check if used.”
Clause 5.3 names the provider.
- One of several wordings
“On ending, either nothing is payable, or fees already paid are refundable only as shown in the table.”
Clause 8 shows which.
Questions people ask
What are terms of business?
They are the written terms on which a broker gives a client advice. They cover the service, the cost, how to complain and what compensation protections apply.
What is the difference between whole of market and a panel?
A whole-of-market broker looks across the full market of mortgage lenders. A panel broker is limited to a stated group of lenders and says so.
Does the broker get paid by the lender?
Often yes. The terms explain that commission may be paid by the lender on completion, with the amount or method shown to the client before they apply.
Does it cover insurance?
Only if the firm advises on it. There is an optional section describing the insurance and which insurers the firm uses.
Does it replace regulatory documents?
No. These are the firm's terms with its client. A regulated firm has its own regulatory duties and documents to meet separately.
Use this template
It opens in DocuWeave as a template you can check, change and publish. Nothing is used until you do.