An Additional Income Opportunity for Mortgage Advisers
Mortgage advice can be rewarding, but the income it produces is not always predictable.
An adviser may spend weeks progressing an application, only to encounter delays involving lenders, underwriters, valuers or property chains. Clients may also disappear after completion, while future recommendations and referrals can never be taken for granted.
That makes income diversification an increasingly relevant subject for many mortgage professionals.
At the same time, mortgage clients are often reviewing their household expenditure, arranging services for a new property or working out what they can comfortably afford each month.
This creates an interesting question:
Could helping suitable clients review services such as energy, broadband and mobile provide another useful point of contact, while also creating an additional income stream for the mortgage adviser?
One option worth considering is becoming a Utility Warehouse Partner.
Utility Warehouse is not a replacement for regulated mortgage or protection advice. It is a separate, optional opportunity involving household services. However, when approached professionally, transparently and with the client’s interests first, it may complement the work some mortgage advisers already do.
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Why Mortgage Advisers May Need More Than One Income Stream
Much of a mortgage adviser’s income is connected to successful transactions.
Even when an adviser has done everything correctly, their payment may depend on circumstances outside their control. A lender may request further evidence, a survey may raise concerns or a property chain may collapse before completion.
Mortgage activity can also rise and fall with:
- interest rates;
- housing-market confidence;
- lending criteria;
- economic conditions;
- seasonal demand;
- the availability of suitable properties.
Protection business can provide an important additional source of income, but clients do not always proceed with the recommended cover. Cost is frequently one of the reasons given, particularly when household budgets are already under pressure.
This does not mean there is anything fundamentally wrong with the traditional mortgage-advice model. It simply explains why some advisers look for additional income streams that are not entirely dependent on the next mortgage completion.
A complementary service may help an adviser create more resilience while continuing to concentrate on their core professional work.
“From personal experience, I found that clients gave me more business when I looked after their utilities as well as their mortgage and protection.” — Spencer Thomson, Utility Warehouse Partner.
Why Household Services Are Relevant to Mortgage Clients
People buying or moving home usually have more to arrange than the mortgage itself.
They may need to consider:
- who will supply energy at the new property;
- when broadband should be installed;
- whether their current mobile arrangements still offer good value;
- what household insurance or protection they require;
- the overall cost of running their new home;
- whether some monthly bills can be simplified or reduced.
These are practical concerns that naturally arise during the moving process.
A mortgage adviser will often have a broader understanding of the client’s financial position because income, commitments and regular expenditure have already been discussed as part of the fact-find.
That information must always be handled carefully. It should never be used to pressure a client into taking an unrelated product or service.
However, where it is relevant and permitted by the adviser’s firm, the adviser may be able to offer a separate and optional household-services review.
This can provide useful assistance at a time when the client already needs to make decisions about their energy, broadband, mobile and other household arrangements.
“Whilst promoting UW, I came across homeowners who wanted to talk mortgages — win-win.” — Sue Allen, Utility Warehouse Partner.
What Is Utility Warehouse?
Utility Warehouse, commonly known as UW, is a UK household-services provider.
Customers can take a combination of eligible services, including:
- energy;
- broadband;
- mobile;
- insurance products;
- the UW Cashback Card.
Service availability, suitability and eligibility depend on the customer’s circumstances and address.
One of UW’s distinguishing features is the ability to manage several household services through one provider. UW promotes the convenience of bringing eligible services such as energy, broadband, mobile and insurance together through one account and bill.
Customers do not have to take every available service, and UW will not necessarily be the cheapest or most appropriate choice for every household. A personalised quotation should always be obtained before making a decision.
UW largely grows through personal recommendation. Self-employed UW Partners introduce customers, explain the available services and provide ongoing support.
Mortgage advisers considering the opportunity can review the official Utility Warehouse Partner information before deciding whether it would be appropriate for their existing business.
How Could UW Complement a Mortgage Adviser’s Existing Service?
Helping clients consider their wider household expenditure
Mortgage advisers already discuss income, credit commitments and expenditure with their clients.
In some cases, that process may highlight substantial spending across several household providers. A client could be paying separate companies for energy, broadband, mobile contracts and insurance, while also spending significant amounts with everyday retailers.
A separate review may reveal opportunities to simplify those arrangements or reduce costs.
Savings should never be assumed. The result will depend on the client’s current providers, tariffs, usage, location and service requirements.
However, offering a review can still be valuable, even when the conclusion is that the client should remain with their existing providers.
Supporting clients when they move home
Moving home is one of the most natural points at which to review household services.
A buyer may be uncertain about:
- what happens to the existing energy supply;
- how soon broadband can be connected;
- whether current contracts can be transferred;
- whether early termination charges will apply;
- which services are available at the new address.
An adviser who can arrange an optional UW review may help remove one task from an already long moving checklist.
The household-services discussion should take place separately from the regulated mortgage recommendation, with the client clearly understanding that they are under no obligation to proceed.
Remaining useful after mortgage completion
The relationship between adviser and client need not end when the mortgage completes.
Mortgage advisers often want clients to return for:
- remortgage advice;
- further borrowing;
- protection reviews;
- buy-to-let advice;
- help following changes in their personal circumstances.
Providing relevant ongoing support can give the adviser another legitimate reason to remain in contact, subject to the client’s consent and the firm’s data-protection and marketing procedures.
A useful relationship is more likely to be remembered than one that ends immediately after completion.
Creating additional referral opportunities
Clients who feel that an adviser has provided help beyond the basic transaction may be more inclined to recommend that adviser to others.
That outcome is not guaranteed. Referrals depend on the overall client experience, the quality of the advice and many other factors.
Nevertheless, an additional service can help an adviser demonstrate that they are interested in the client’s wider circumstances rather than simply completing a mortgage application.
Could Household Savings Support Wider Financial Planning?
Cost is one of the most common concerns raised during protection conversations.
A client may agree that life insurance, critical illness cover or income protection is important but feel that their monthly budget cannot accommodate the recommended premium.
Reviewing household expenditure may sometimes uncover genuine and sustainable savings elsewhere.
For example, a client who reduces the combined cost of broadband and mobile services may have greater flexibility within their monthly budget.
The UW Cashback Card may also help eligible customers reduce their UW bill through everyday spending. Cashback earned with participating retailers is credited against the customer’s UW bill, subject to current rates, exclusions, fees and terms.
A fuller explanation is available in this guide to how the UW Cashback Card works.
This does not mean that a client should be encouraged to change household services simply to fund a financial product.
Any regulated mortgage or protection recommendation must remain suitable and affordable in its own right.
Potential household savings must not be guaranteed, and they should not be presented as changing the formal affordability calculation used by a mortgage lender.
The appropriate message is more measured:
When genuine savings can be identified elsewhere, a client may have more flexibility within their overall household budget.
Utility Warehouse and Consumer Duty
The FCA Consumer Duty sets higher and clearer standards of consumer protection across financial services and requires firms to focus on delivering good customer outcomes.
Considering a client’s wider circumstances may be consistent with a customer-focused approach. Helping someone understand their household expenditure could also provide practical value.
However, introducing Utility Warehouse does not, by itself, demonstrate Consumer Duty compliance.
Mortgage advisers must still consider:
- whether the introduction is genuinely relevant;
- whether the client understands that UW is separate from the mortgage service;
- whether the adviser’s commercial relationship is disclosed appropriately;
- whether any commission or financial interest needs to be declared;
- whether communications are fair, clear and not misleading;
- how conflicts of interest will be identified and managed;
- how client information and consent will be handled;
- whether the client can decline without affecting the mortgage service they receive.
Most importantly, mortgage advisers should obtain approval from their firm, principal, network or compliance department before adding UW to their client process.
Requirements will vary according to the adviser’s employment status, contractual arrangements, permissions and internal policies.
Nothing in this article should be treated as legal, regulatory or compliance advice.
How Do Mortgage Advisers Earn as UW Partners?
UW offers several ways UW Partners can earn money.
These can include an upfront customer payment, ongoing residual income and, for Partners who choose to build and support a team, additional income linked to that activity.
Upfront customer income
UW Partners can receive commission when a customer they introduce takes qualifying services.
The amount depends on factors including:
- the customer’s circumstances;
- whether the customer is a homeowner or tenant;
- which services are selected;
- whether the services become live;
- current promotional arrangements;
- UW’s eligibility and payment rules.
Current UW information may advertise upfront commission of up to a stated amount for eligible customers taking a qualifying combination of services. The precise amount and qualification criteria should always be checked against the current official UW compensation information before publication or discussion with a prospective Partner.
The words “up to” and “eligible” are important.
It would be misleading to assume that every customer will generate the maximum payment or to multiply that figure by a projected number of weekly customers and describe the result as expected annual earnings.
Actual income will depend on customer numbers, service choices, qualification rules, cancellations and the Partner’s own activity.
Recurring or residual income
UW Partners may also receive ongoing income connected to eligible services used by customers they have introduced.
UW generally refers to this as residual income, although “recurring income” may be easier for people outside the business to understand.
This can be attractive to mortgage advisers because it is different from income generated by an individual mortgage completion.
However, residual income generally begins modestly. It takes time to develop a meaningful customer base, and future payments are not guaranteed.
Customers can move home, change provider, cancel services or alter their arrangements. The Partner must also comply with the current compensation plan and any relevant qualification requirements.
Further information about the Utility Warehouse compensation plan explains the distinction between upfront and longer-term Partner earnings.
Additional business generated indirectly
A separate potential benefit is the opportunity for cross-referrals.
A household-services customer may later require:
- a mortgage;
- a remortgage;
- protection advice;
- buy-to-let assistance;
- help following a change in circumstances.
Likewise, an existing mortgage client who receives useful additional help may introduce the adviser to friends, relatives or colleagues.
This is a possible indirect benefit rather than part of UW’s formal commission promise.
A Realistic Example of How It Might Fit Into an Adviser’s Day
Consider a mortgage adviser helping a couple purchase their first home.
During the normal mortgage process, the couple mention that they need broadband installed quickly and do not know what to do about the energy supply at the property.
Once the regulated mortgage discussion has been completed, the adviser explains that they also have a separate commercial relationship with Utility Warehouse.
The adviser offers an optional household-services review and makes clear that:
- the review is not part of the mortgage recommendation;
- the clients do not have to take part;
- declining will not affect the mortgage service they receive;
- the adviser may receive commission if they choose qualifying UW services;
- information will only be used or shared with permission;
- any quotation will be based on the clients’ individual circumstances.
The couple receive a personalised quotation and compare it with their alternatives.
They may decide that UW offers suitable value or convenience. They may instead choose another supplier or remain with their current providers.
Either decision is acceptable.
The adviser’s role is to offer relevant assistance and clear information, not to force a particular outcome.
Experiences from Mortgage Brokers
The original presentation behind this article included the experiences of several people with backgrounds in mortgage and financial services.
Spencer Thomson described introducing UW alongside mortgage and protection work. In his experience, clients who received help with utilities were more likely to refer other people to him.
That is his personal experience. It should not be treated as an independently verified average or a result that every adviser can expect.
Sue Allen explained that she fitted UW activity around an already busy career as a mortgage adviser. While discussing UW with homeowners, she also encountered people who wanted to talk about mortgages.
Mike Lupton described wanting clients to approach him first whenever they needed help, even when their initial question related to something outside his direct mortgage service.
By helping clients arrange energy, broadband and other household services after a move, he believed he had created both an additional income stream and further opportunities for mortgage introductions.
These examples illustrate how the two activities may complement one another, but individual results will differ considerably.
Important Compliance and Professional Considerations
Mortgage advisers operate in a regulated environment, so this opportunity requires more thought than simply registering and mentioning UW to every client.
Before proceeding, an adviser should consider the following areas.
Firm or network approval
The adviser may need formal permission before conducting an outside commercial activity.
Some firms or networks may prohibit it. Others may require the activity to be declared, reviewed and approved.
Clear commission disclosure
The client should understand that the adviser has a commercial interest and may receive payment if qualifying services are taken.
The precise disclosure requirements should be confirmed with the adviser’s compliance department.
Separation from regulated advice
The UW conversation should not be presented as part of the mortgage recommendation.
A client must not be told or allowed to believe that taking UW services will improve the chances of mortgage approval.
Conflicts of interest
The adviser’s potential commission must not take priority over the client’s interests.
UW should not be recommended where it is clearly unsuitable or poor value for the client.
Data protection and consent
Information collected for mortgage advice should not automatically be reused for a separate commercial purpose.
The adviser should obtain appropriate consent and follow the data-handling requirements of their firm and UW.
Record keeping
It may be sensible or necessary to record:
- when UW was mentioned;
- why it was considered relevant;
- what disclosures were made;
- what consent was obtained;
- whether the client proceeded;
- what information was shared.
Marketing permissions
An adviser should confirm whether they are permitted to market separate services to existing mortgage clients, particularly after the original transaction has completed.
Potential Advantages for a Mortgage Adviser
For the right adviser, the UW opportunity may offer:
- an additional service relevant to homeowners and home movers;
- the possibility of helping clients simplify household bills;
- potential savings based on individual circumstances;
- upfront income from qualifying customers;
- the opportunity to build residual income gradually;
- another reason to maintain appropriate client contact;
- possible introductions to future mortgage or protection clients;
- activity that can be fitted around an existing advice practice;
- a comparatively low initial registration cost;
- no physical stock to purchase or store.
These are potential advantages, not promises.
Possible Drawbacks and Limitations
A balanced assessment must also acknowledge the limitations.
- Not every client will want to discuss utilities.
- UW will not be the cheapest or most suitable option for every household.
- Partner commissions and promotional arrangements can change.
- Residual income normally takes time and consistent activity to build.
- The additional service may distract some advisers from their core work.
- Firms or networks may restrict outside commercial activities.
- Disclosure, consent and record keeping create additional administration.
- Customers can cancel or move their services.
- Commission may be affected by eligibility rules, cancellations or reversals.
- Income is variable and not guaranteed.
- The adviser may need to provide ongoing customer support.
An adviser expecting effortless or immediate passive income is likely to be disappointed.
The opportunity is better suited to someone willing to develop a long-term customer base and look after those customers properly.
What does It Cost to Become a UW Partner?
Current official UW information should be checked for the latest registration fee, monthly licence fee and introductory arrangements before an adviser joins.
A more detailed explanation of the cost of joining Utility Warehouse as a Partner is available separately.
Fees, terms and introductory arrangements can change, so the current position should always be confirmed before registering.
Questions to Ask Before Adding UW to a Mortgage Business
Before joining, a mortgage adviser should ask:
- Does my firm, principal or network permit this activity?
- Do I need written approval?
- How should I disclose my UW relationship and commission?
- When would a household-services conversation genuinely benefit a client?
- How will I keep UW separate from regulated mortgage advice?
- How will client consent be obtained and recorded?
- Can I discuss potential savings without making unsupported claims?
- Do I have time to complete the necessary training?
- Am I prepared to provide aftercare?
- Would I feel comfortable recommending a review to my own clients?
- Am I looking only for quick commission, or am I willing to build a long-term customer base?
It is also sensible to carry out your own Utility Warehouse due diligence before making a commitment.
Is Utility Warehouse a Good Income Opportunity for Mortgage Advisers?
Utility Warehouse could be a useful additional income opportunity for some mortgage advisers, particularly those who:
- work regularly with homeowners and people moving property;
- emphasise long-term client relationships;
- enjoy helping clients beyond the mortgage transaction;
- have permission to undertake an outside business activity;
- are comfortable explaining their commercial relationship;
- understand that income is variable;
- are prepared to build gradually;
- will provide ongoing customer support.
It may be less suitable for advisers whose firm prohibits the activity, who do not want an additional client-service responsibility or who expect guaranteed earnings.
The strongest reason to consider UW is not simply the possibility of another commission payment.
It is the opportunity to add a separate, potentially useful service to an existing client relationship while developing an income stream that is not completely dependent on mortgage completions.
“I’ve always wanted my clients to come to me first for everything, even if it’s something I can’t help with. This way, I increase my chances for more business.” — Mike Lupton, Utility Warehouse Partner.
Frequently asked questions
A Personal Perspective
I have been a Utility Warehouse customer since 1998 and have seen the company, its services and its Partner opportunity develop considerably over that time.
For the right mortgage adviser, I believe it can provide a useful additional service and income stream, but it needs to be approached professionally, transparently and with the client’s interests first.
I can explain how the Partner model works, the training and support available, the current costs and income structure, and the practical questions a mortgage adviser may wish to consider.
The conversation is informal and exploratory. There is no obligation to join, and advisers should obtain any approval required by their firm, principal or network.
Customer savings depend on individual circumstances, and Partner earnings are never guaranteed.
Mortgage advisers interested in learning more can book an informal conversation with Jeremy.
“For the right mortgage adviser, Utility Warehouse can provide a practical way to add more value for clients, strengthen long-term relationships and build an additional income stream — provided it is approached professionally, transparently and with the client’s interests first.” — Jeremy Tromans, Utility Warehouse Partner.
Save | Earn | Refer | Get further info | Ask questions | Or call Jeremy on: 01527 523 013 / 07726 196 153.
