Landbay’s move to reward brokers for keeping the borrower on their books follows several major banks and building societies’ decision to award retention proc fees this year.
Santander kicked off the trend in January, preparing to offer a 0.20% proc fee for product transfers to take effect from 1 July with a minimum fee of £400 promised. Natwest and Nationwide swiftly followed a month later with 0.20% retention proc fees to be implemented in the summer.
Paul Brett, managing director of intermediaries at Landbay, said: “Our relationships with intermediaries are key to ensuring we continue to lend good quality loans to professional and reliable borrowers.
“Introducing retention fees is part of our ongoing commitment to the broker community, but will also come as good news for customers who now more than ever will be needing specialist advice at a time of regulatory and fiscal change. This is just one step towards creating a more equal and transparent playing field for advice.”
While brokers are glad that the work involved in arriving at the decision to recommend their client remains with the same mortgage lender is being recognised, they say more can still be done.
During his first Broker Talk podcast Andrew Montlake, director of Coreco, said: “The battle for retention proc fees has yet to be won. It’s the first step, it’s great that lenders are recognising the work that brokers are doing and they are paying us 0.20% on average, but that is not a proper proc fee. It is a step in the right direction, but lenders – it ain’t the end of the story.”
Listen to Montlake in discussion with Lea Karasavvas, director of Prolific Mortgage Finance, and Martin Stewart, director of London Money, about the latest challenges and opportunities in the mortgage market.