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Brokers will be ‘fairly rewarded’ for retention business – TSB

  • 27/01/2016
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Brokers will be ‘fairly rewarded’ for retention business – TSB
Brokers will be ‘fairly rewarded’ for retention business when the first wave of TSB mortgage product terms expire, confirmed mortgage intermediary director Roland McCormack.

The challenger bank began offering mortgages direct to the high street in September 2013 and through its intermediary channel in January 2015, following a successful trial period.

Ahead of broker-originated mortgages coming up for renewal from January 2017 onwards, the challenger bank has begun to look at an IT solution which will allow it to pay brokers a fee for retained business.

“We expect to pay brokers because it is the fair and proper way to do business. How we will do this is our next focus,” said McCormack speaking exclusively to Mortgage Solutions (pictured).

TSB said it places equal value on new and existing customers, but McCormack would not confirm, as yet, whether it would pay proc fees for newly introduced mortgages at the same rate as retained business.

“The principle which exists for me is that the payment should be commensurate for the work. We understand that brokers need to be fairly rewarded for the work they do.”

Following a broker panel debate at a Mortgage Solutions event last November, panel chair Jeremy Duncombe, director of Legal & General Mortgage Club, grilled lenders on why they were failing to pay brokers for retention business.

Later that month, both Cambridge and Skipton Building Societies revealed their plans to pay brokers for returning customer mortgage business.

Read the full interview with Roland McCormack online on 4 February.

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