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Cambridge BS rolls out proc fees for retention deals

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  • 18/11/2015
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Cambridge BS rolls out proc fees for retention deals
Cambridge Building Society has become the first mutual to offer brokers procuration fees when a customer’s mortgage is renewed with the lender upon maturity.

If customers choose to stay on at the Cambridge because they are advised that this is the best option, the advising intermediary will be paid a proc fee of 0.2%.

In addition to paying a proc fee on retention, Cambridge will also waive early repayment charges during the month of maturity, while the next deal chosen will exclude upfront fees.

The Cambridge said the initiative has been launched as a result of listening to intermediaries and recognising the time brokers spend with customers in reassessing their mortgage needs.

Business development manager Jonathan Mann (pictured) said: “We appreciate the work intermediaries put in and the time and effort that goes into helping their customers.

“They are qualified advisers who support their customers to find the best option. If it happens that the most suitable option is to stay with us then the intermediary will receive a 0.2% procuration fee.”

Legal and General Mortgage Club Director Jeremy Duncombe welcomed the move. He said: “The momentum is now moving towards more lenders recognising the important part that intermediaries play in the retention of customers.

“Advisers must go through a fully advised process to ensure customers are getting the most appropriate product, and it’s great to see Cambridge acknowledging that with this initiative.”

This month Duncombe put lenders in the spotlight at The Mortgage and Protection Event in Southampton, demanding answers on whether they planned to start paying out on product retention deals.

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