Following Santander’s decision to start paying procuration fees from March, we have seen a domino effect with other lenders dropping into line and either starting to pay, or giving a public declaration to do so.
All good news?
As always, things are not always as clear-cut as we first feel.
We have seen a variety of fee structures issued with a wide variance of between 20bps and 38bps. I believe some will move over time, but the make-up of the correct fee structure is probably an article in itself.
So, are we nearly there? When we look at the top 15 lenders which provide 80% plus of new business volumes, only a couple stand out now.
We cannot relax just yet though, as this is not the end game. In some respects, the onus has now been put firmly back in the court of the intermediary. We have campaigned for this; we now need to ensure we can deliver.
Key questions
Do we understand what each lender does in relation to writing to existing clients? Do we know who writes three months or two months in advance? Do we understand what type of letter they send? And, is there a note to return to your intermediary included?
Irrespective of the size of your client bank, this level of detail is now required. Are your customer relationship management systems correctly correlated to ensure you can send a note to your clients in advance, to guide them to call you once they have received the lender’s letter?
Being proactive now, more than ever, will provide many opportunities and help generate the right type of business and the right client outcomes.
Product ranges
The final area where I expect to see movement during the course of 2017 will be the actual products offered within the product transfer programme.
Some lenders have already stated that they will offer the same range as their core new customer range, which is excellent news. Will the others follow?
Eighteen lenders and counting is good news, but understanding the detail will be key for a successful transition.
All we need now is for the Council of Mortgage Lenders (CML) to start publishing the data.
