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Commission

Commission as of 01.05.2023

Our Remuneration

 

We Piccadilly Mortgages Limited trading as Piccadilly Mortgages act as intermediary between you the consumer, and the product provider with whom we place your business.

 

The Background

Pursuant to provision 4.58A of  the Central Bank of Ireland’s September 2019 Addendum to the Consumer Protection Code, all intermediaries, must make available in their public offices, or on their website if they have one, a summary of the details of all arrangements for any fee, commission, other reward or remuneration provided to the intermediary which it has agreed with its product producers.

 

What is Remuneration?

Remuneration is the payment earned by the intermediary for work undertaken on behalf of both the provider and the consumer. The amount of remuneration is generally directly related to the value of the products sold.

 

What is Commission?

Commission is payment that may be earned by an intermediary for work undertaken for both provider and consumer.

 

There are different types of commission models:

Single commission model: where payment is made to the intermediary shortly after the sale is completed and is based on a percentage of the premium paid/amount invested/amount borrowed.

Trail/Renewal commission model: Further payments at intervals are paid throughout the life span of the product.

 

Indemnity commission

Indemnity commission is the term used to describe a commission payment made before the commission is deemed to be ‘earned’. Indemnity commission may be subject to a clawback (see below) if the consumer lapses or cancels the product before the commission is deemed to be earned.

Other forms of indemnity commission are advances of commission for future sales granted to intermediaries in order to assist with set up costs or business development.

 

Mortgages

Commission may be earned by intermediaries for arranging credit for consumers, such as mortgages. The single, or standard, commission model is the most common commission model applied to the sale of mortgage products by mortgage credit intermediaries (Mortgage Broker).

 

Clawback

Clawback is an obligation on the intermediary to repay unearned commission. Commission can be paid directly after a contract is concluded but is not deemed to be ‘earned’ until after a specified period of time. If the consumer cancels or moves their mortgage within the specified time, the intermediary must return commission to the product producer.

 

Other Fees, Administrative Costs/ Non-Monetary Benefits

The firm may also be in receipt of other fees, administrative costs, or non-monetary benefits such as:

  • Attendance at product provider seminars

 

Fees payable by us

We may at times have to pay a fee to the agency which we have an undertaking with in order to formally submit your mortgage application to one of the banks that they work with.

 

Profit Share arrangements

In some cases, the intermediary may be a party to a profit-share arrangement with a product provider and will earn additional commission. Any business arranged with these product providers on a client’s behalf will be placed with the product provider because that product provider is at the time of placement, the most suitable to meet the client’s requirements, taking all the client’s relevant information, demands and needs into account.

Maximum Commission Rates as of 01.05.2023

Permanent TSB (Broker Guide to Mortgage Commission and Mortgage Commission Retrieval)

The below table sets out the remuneration paid to Brokers for the introduction of Mortgages to Permanent TSB. It also details the commission retrieval that applies when a Mortgage redeems within the first 3 years of the date of issue of the advance.

 

Segment Type Commission Commission Retrieval
0-12 Months 13-24 Months 25-36 Months
First Time Buyer Mortgage 1% 100% 50% 25%
Switcher Mortgage 1% 100% 50% 25%
Second Time Buyer Mortgage 1% 100% 50% 25%
Residential Investment Property 1% 100% 50% 25%
Mortgage Mover (Existing Borrowings) 0% n/a n/a n/a
Mortgage Mover (Additional Borrowings) 1% 100% 50% 25%

 

Please note: Where any of the segment types are in arrears for a period of 90 consecutive days or more within 12 months of the date of issue of the advance, commission retrieval of 100% of the commission paid in respect of such Mortgage will apply.

 

ICS Mortgages (Broker Commission and Clawbacks)

Segment Type Commission Clawbacks
0-12 Months 13-24 Months 25-36 Months
First Time Buyer Mortgage 1% 100% 50% 25%
Second/Subsequent Time Buyer Mortgage 1% 100% 50% 25%
Switcher Mortgage 1% 100% 50% 25%
Equity Release 1% 100% 50% 25%
Residential Investment Property 1% 100% 50% 25%

 

The Mortgage Store (Commission and Clawbacks)

Segment Type Commission Clawbacks
0-12 Months 13-18 Months 19-24 Months 25-30 Months 31-36 Months
First Time Buyer Mortgage 1% 100% 70% 55% 40% 25%
Second/Subsequent Time Buyer Mortgage 1% 100% 70% 55% 40% 25%
Switcher Mortgage 1% 100% 70% 55% 40% 25%
Equity Release n/a n/a n/a n/a n/a n/a
Residential Investment Property n/a n/a n/a n/a n/a n/a

 

Brokers Ireland (Broker Commission and Clawbacks)

Lender Commission Clawbacks
Year 1 Year 2 Year 3
Haven 1% 75% 50% 25%
PTSB 1% 100% 50% 25%
KBC 1% *Pro Rata Monthly Basis *Pro Rata Monthly Basis *Pro Rata Monthly Basis
Finance Ireland 1% 100% 50% 25%
ICS 1% 100% 50% 25%

 

Avant Money (Broker Commission and Commission Clawbacks – Effective 14 September 2020)

Segment Avant Money Commission Avant Money Commission Clawback
First Time Buyer 1% Clawback is monthly pro-rata over 36 months*
Second/Subsequent Buyer 1% Clawback is monthly pro-rata over 36 months*
Switcher 1% Clawback is monthly pro-rata over 36 months*
Equity Release 1% Clawback is monthly pro-rata over 36 months*

 

*Avant Moneyclawback commission over 36 months on a pro-rata, month by month basis (36/36ths) – i.e. if the loan redeems after 15months, clawback will be 21/36 of commission.