You are here: Home - News -

Coventry reveals retention proc fee plans while RBS and Nationwide stand firm

by:
  • 11/01/2017
  • 0
Coventry Building Society has committed to paying procuration fees for retention business, but Nationwide and Royal Bank of Scotland have maintained that they have no plans to introduce the fees at present.

In a statement, Coventry said it was committed to “paying intermediaries proc. fees for retention business “during this year”. It will release details in due course.

During a panel debate at the 2016 Mortgage and Protection Event in November, Nationwide’s head of accounts Gary Salter said it was disingenuous for the industry to label lenders that did not pay for product transfers as non-broker friendly.

A spokeswoman for the lender said: “We have procuration fees constantly under review but have no plans to change our current model at this time.”

RBS, which owns the Natwest brand, said it has no plans to change its proposition but is also keeping this under review.

Gemma Harle, managing director at Tenetlime, said: “Nationwide will be very much outliers if they decide not to pay retention fees. It’s great that more of the lenders have recognised they should be paid for the work they’ve done because that advice adds value to the lender, so those lenders that are not paying will find that hard to justify now. We understand that all firms have financial constraints but at least some recognition goes a long way.

“It’s fantastic that Santander will introduce product transfer fees but it’s also interesting that they have changed their stance as they had a very entrenched view on the matter previously; I’d like to think it was because they were listening to the industry and taking their feedback on board. Timescales will be one to watch on Coventry’s announcement.”

As a new lender to the intermediary market, HSBC said it has had very few customers reaching the end of their introductory term that have come through a broker. A spokesman added: “The retention proposition for brokers will be reviewed in due course.”

Of the remaining top 10 UK lenders by gross market share according to the Council of Mortgage Lender’s (CML) 2015 data, Yorkshire Building Society is currently piloting an initiative, while Santander revealed they would begin paying a fee of 0.2% to all intermediary partners from 1 July.

Lloyds pays a full procuration fee of 0.33% to advisers on retention, while Virgin Money launched its proposition last year and pays a rate of 0.38%. Barclays and Clydesdale both pay a rate of 0.2%.

There are 1 Comment(s)

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.

Profiles

Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.

Marketwatch

Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.

Poll

Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
Read previous post:
Map of Manchester
Manchester council defines ‘misunderstood’ affordable housing term

Manchester City Council has come up with its own definition of affordable housing after a report to its cabinet criticised...

Close