How We Are Paid
The first meeting is at our expense with no charge to you. We will talk about what is important to you and review your financial goals. Together, we will determine if Peppermint Financial Solutions can support your needs.
After this initial discussion, the way we are paid depends on the area we are advising you on. We will discuss and explain our fees prior to any commitment.
Investments, Pensions and Savings1, 2
We charge a fixed fee for Investments, Pensions and Savings depending on the complexity of your situation. We find that ‘one size’ does not fit all so, having ascertained what you want to achieve, we will provide a breakdown for each of the different stages as detailed in The Advice Process. Once we are in agreement, we will commence work.
There is no fee for Life Protection products. We receive commission from the insurance company as this is standard practice for Life Protection products.
Equity Release Mortgages4, 5
We charge an Advice and Arrangement fee of £950 for Equity Release Mortgages and may also receive commission from the lender. Our minimum cost is £1,500 so if our fee and the commission is less than £1,500, an additional fee will apply. For example, with a mortgage of £10,000, if the lender paid us 2.0% commission, i.e. £200, the total of this plus the £950 fee is below our minimum charge of £1,500, so there would be an additional charge of £350.
Residential and Investment Mortgages5
We charge an Advice and Arrangement fee of £450 for Residential and Investment Mortgages and may also receive commission from the lender. Our minimum cost is £1,200 so if our fee and the commission is less than this, an additional fee will apply. For example, with a mortgage of £100,000, if the lender paid us 0.35% commission, i.e. £350, the total of this and the Advice and Arrangement fee of £450 will be £800. As this is below our minimum cost, there will be an additional fee of £400 payable to reach our £1,200 minimum charge.
On-Going Reviews for Investments, Pensions and Savings
We provide three levels of On-Going Service which are charged at 0.5% of the value of your assets. For example, if the value of your assets is £250,000 we would charge £1,250 per year. We will work with you to determine the right service level for you. It typically depends on the desired review frequency and overall asset value.
VAT may be payable in some circumstances. If so, we will inform you accordingly.
2 Pensions – A pension is a long-term investment. The fund value may fluctuate and can go down. Your eventual income may depend upon the size of the fund at retirement, future interest rates and tax legislation.
3 Life Cover (Non-Investment) and Income Protection – The plan will have no cash in value at any time and will cease at the end of the term. If premiums are not maintained, then cover will lapse.
4 Equity Release – This is a lifetime mortgage. To understand the features and risks ask for a personalised illustration.
5 Mortgages – Your home may be repossessed if you do not keep up repayments on your mortgage.