rscnewhomes.com Pricing

The information regarding rscnewhomes.com’s pricing is partially disclosed on their homepage, offering a general understanding of their fee structure.

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This partial transparency is a positive for a conventional service, but the existence of fees in relation to interest-based products remains a concern from an Islamic perspective.

Disclosure of Fees and Commissions

The website clearly states how RSC New Homes charges for its services, outlining conditions under which fees are waived and when they apply.

This level of disclosure is expected of legitimate financial advisory firms.

• Conditional Fee Waiver: “If we arrange a mortgage on a property from one of our associated new homes developers we will waive our fee.” This incentive mechanism suggests partnerships with developers, indicating a streamlined process for certain clients.
• Typical Fee Structure: “Otherwise there may be a fee for mortgage advice. The actual amount you pay is dependent upon the amount of research and administration that is required and a typical fee is £395 which would become payable on application.” This provides a benchmark for potential costs for clients not purchasing from associated developers.
• Commission from Lenders: “We will also receive commission from the lender in addition to any fees you pay.” This is a standard practice in the mortgage brokerage industry, where brokers receive compensation from the lenders for bringing in business. Transparency about this dual income stream is important for consumers.
• Payment Timing: The “typical fee is £395 which would become payable on application,” meaning the client pays the fee upfront once they decide to proceed with a mortgage application through RSC New Homes.
• Factors Influencing Fee: The statement that the fee depends on “the amount of research and administration that is required” suggests that while £395 is typical, it could potentially vary, implying a bespoke service where more complex cases might incur higher costs.

Value Proposition for the Fee

Clients pay the fee for the advisory service and the facilitation of securing a mortgage, which includes access to a wide range of products and expert guidance.

• Access to Thousands of Schemes: RSC New Homes boasts “access to thousands of mortgage schemes. many of which are exclusive to New Build properties.” This extensive access is a key part of the value clients pay for, as it theoretically allows them to find the most suitable and competitive deals.
• Expert and Tailored Advice: The fee covers the “expert, tailored & friendly advice” promised by their financial advisors. This involves assessing client eligibility, understanding their needs, and recommending appropriate mortgage and insurance products.
• Simplification of Process: The service aims to “make things simple” by handling “all of your mortgage related queries from start to finish.” This includes the research, application, and administrative aspects of securing a mortgage, saving the client time and effort.
• Speedy Processing: The promise of “Speedy processing” is another benefit clients might expect for the fee, aiming to reduce the waiting time typically associated with mortgage applications.
• Exclusive Products: Their claim of having access to “Exclusive mortgage products” implies that they can potentially offer deals not available directly to the public or through other brokers, providing a unique selling point for their service.

Ethical Consideration of Fees for Muslims

For Muslim consumers, the ethical dilemma with rscnewhomes.com’s fees is not necessarily the fee itself, but what it facilitates.

Since the fee is for advice and arrangement of interest-based mortgages and conventional insurance, paying it becomes indirectly linked to impermissible transactions. rscnewhomes.com Alternatives

• Facilitating Riba: Even if the fee itself is for a “service” rather than interest on a loan, its purpose is to facilitate a contract that involves riba. In Islamic finance, participating in or assisting in riba is generally impermissible.
• Avoidance of Indirect Support: The principle of avoiding forbidden transactions extends to not actively supporting or facilitating them. Paying a fee to an entity that primarily deals in riba-based products can be seen as indirectly contributing to such practices.
• Preference for Halal Advisory Services: If one needs advice on home financing, the ethical choice for a Muslim would be to seek out advisors who specialize in Sharia-compliant models, even if those advisors also charge a fee for their services.
• No Value in Facilitating the Impermissible: From an Islamic ethical perspective, there is no value in paying for a service that guides one towards a forbidden transaction, regardless of the perceived “saving” or “convenience” it offers.
• Better Use of Funds: The £395 fee, or any amount paid to such a service, could instead be allocated towards saving for a Sharia-compliant home purchase, investing in ethical funds, or contributing to Takaful schemes.