At Resi, we understand that borrowers who use solutions-based lenders often have changing financial needs over the short to medium term. These needs may involve asset sales or a refinance into a more traditional home loan, which can trigger a clawback of upfront commission. We are here to support you and your clients through these changes.
The adjustments announced here to our clawback rules are designed to give brokers greater confidence that their efforts to find a suitable solution for their borrowers will be rewarded appropriately.
As a result, applications settled from 1 December 2024 will be subject to revised clawback rules detailed below:
• Prime Alt Doc, plus all Near Prime and Specialist loans
Clawback term reduced to 6 months:
100% months 0 – 6.
• Prime Full Doc Loans:
Clawback term reduced to 18 months:
100% months 0- 6;
75% months 7 – 12;
50% months 13 – 18.
By adjusting our clawback rules, we aim to reduce the uncertainty around upfront commissions, ensuring brokers are rewarded for the effort they put into providing a solutions-based loan for those who need it.
Please reach out to your Resi BDM for any questions or send an email to [email protected].
