The lender is to pay advisers based on the calibre of business their network or mortgage club submits. Brokers will have paid fees based on a sliding-scale between 35 and 40 bps.
The latest Mortgage Solutions poll found 53% of respondents were positive about the move, saying it would be a step forward for the industry.
Just over a third of those polled thought it would be a bad move for the industry, with a further 11% waiting to see the full effects of the move.Terry McCutcheon, group chief executive of Finance Planning Group, commented: “We support anything to do with improving the standard of packing in the industry.
“It’s so hard to place mortgages these days that we need to make sure we’re giving lenders the best we possibly can. Brokers who submit poor quality or rushed applications damage the industry as a whole.
“Our industry needs to tidy up and put in good quality applications.”
Writing for Mortgage Solutions, Tony Salentino, director at Complete Financial Services, said that he hoped the new rules would increase quality across the industry.
“There was a time that packagers provided just the service that lenders like Abbey seem to be asking for.
“We collated all the necessary paperwork for the lender, instructed the valuation from the lender’s panel and presented the application in a manner where the lender can immediately issue an offer.
“Abbey’s admission that it is worth paying more to have cases reach them that have been properly prepared, so they can go straight to offer, is telling.”
You can read Tony Salentino’s full thoughts in his Mortgage Solutions blog HERE.
