The lender will start paying retention fees of 0.2% from 1 March across networks and mortgage clubs.
Michael Tickner, principal at KT Partnership welcomed the move. “This is an amazing outcome and demonstrates the importance that Santander for Intermediaries now attaches to the responsibility and liability for the advice given,” he said.
Santander said it will work closely with its key account firms over the coming months to ensure the retention structure is implemented efficiently.
Brad Fordham (pictured), managing director, Santander for Intermediaries, said: “After a successful pilot run last year with London & Country, I am delighted to announce plans to pay procuration fees on retention business. Intermediaries play a key role in what we do and we look forward to working even more closely together in 2017 and beyond.”
Andrew Montlake, director at Coreco, added: “It’s positive to see Santander’s commitment to the intermediary market. The move to paying procuration fees demonstrates the importance the team places on the work brokers do and will help to strengthen the relationship between brokers and the Santander team.”
Last year, Virgin Money, Precise Mortgages and Bank of Ireland introduced proc fees for retention deals. In April, Skipton Intermediaries also piloted a proc-fee paying retention system while Atom Bank committed to paying a retention fee for brokers at the same rate of its initial fee.