Santander was the first lender to introduce quality-based fees in summer 2012 for Appointed Representatives, but excluded mortgages with longer loan terms with all advisers and paid a flat rate of 0.50%.
From 2 January, on loans of five years or more, directly authorised advisers will be paid 0.11% less with a flat 0.39% fee.
Appointed Representatives will continue to be paid fees of 0.35% and 0.39% plus five basis points, which means advisers offering the best quality business will be paid six basis points less.
Buy-to-let products have been unaffected and still offer adviser fees of 0.50%.
Santander for Intermediaries managing director Brad Fordham (pictured) said: “These changes provide an opportunity for us to introduce further consistency across a broader range of our product set. We are focussed on writing mortgage business that is good quality and to offering borrowers the right mortgage for their needs.
“Our vision at Santander for Intermediaries is to be the intermediary partner of choice, and we are committed to working closely with intermediaries to continue to improve quality across the industry.”
