Fees
In keeping with two of our main principles at 3DCM our fee structure has been designed with fairness and transparency at the fore. Fees are primarily based on performance, so for 3DCM to be successful then you need to be successful too.
Annual Management Charge*
This covers the administration and running costs of the debt management programme. The fee is paid monthly in advance based on the absolute level of the outstanding debt at the start of the calendar year. Therefore as we reduce your debt your management fee will also be reduced. The 3DCM AMC ranges from 1 to 0.65% depending on the size of the loan.
Quarterly Performance Fee**
A fee of 20% will be levied on the performance in two areas (on an aggregated basis): Foreign exchange performance, or the amount of capital debt reduction over the period, and secondly Interest Rate performance, or the amount of interest saving over the period. This is deducted in arrears at source during the quarterly re-balancing process. Our performance fee uses the 'high water mark' principle whereby it will only be taken if you are in a better position than you have ever been since joining the programme.
Example - £1m Mortgage
* Annual Management Charge of 0.75% - £7,500 paid monthly in advance.
** Quarterly Performance Fees - 5% reduction in the debt (£50,000) and a 1% interest rate saving (£10,000) would incur a performance fee of £12,000 and provide a net saving of £48,000.