Financial advisors could have lost in the region of £330m in the last five years in conveyancing referral fees according to new industry figures.
It states that intermediaries are losing out on the equivalent of two mortgage procurement fees per month, as well as suggesting that this lowers the standard of service that they offer.
The figures state that financial advisors made over 6.8 million mortgage sales for residential properties from 2003 to 2007, but only 40 per cent made convayancing recommendations to their clients.
By not referring clients to conveyancing firm’s advisors have lost out on a potential income of £1,600 per month as the average referral fee is about £100. Across the industry as a whole this amounts to £330m missed out on since 2003.
It was found that if an advisor recommends a service then they will do so to all their clients while those that don’t refer will never refer the service to any of their clients.
So as the credit crunch takes affect financial advisors are urged to consider expanding this revenue stream and improving their bottom line.
By doing a bit of homework and researching a couple of providers they can make an informed choice about a reliable firm to recommend that they are confident in. This should then lead to an increase in customer satisfaction as well as a boost to their bank balances.
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