The scheme, ‘Choices’, covers Kent Reliance’s whole range. Intermediaries will be paid a retention fee of 25 basis points if the borrower remains on the books, although this may vary depending on the broker’s submission route.
All customers coming to the end of their product term will be instructed to speak to an intermediary before selecting their next product.
In the majority of cases, applicants can avoid a new valuation and a solicitor will not need to be instructed so the borrower’s costs are kept to a minimum.
Adrian Moloney (pictured), sales director, OneSavings Bank, said: “The process has been designed to be as smooth as possible, and we already have our sights set on further improvements in the coming months.”
Moloney said Kent Reliance wanted to confirm its commitment to brokers by offering a scheme which rewarded the value and expertise which brokers add to their client relationships.
“We recognise that good advice is appropriate throughout the life of the loan, so encouraging borrowers to speak to their broker at product maturity was the right thing to do, even if that opens up the possibility of them going to another lender,” he added.
Moloney said he hopes other specialist lenders will follow the lender’s lead and launch similar schemes.
Andrew Montlake, director, Coreco, said: “This is a very welcome announcement and it is good to see Kent Reliance continuing to support brokers by offering a simple retention solution.
“As a specialist lender often dealing with complex cases, it is important to ensure that their customers continue to get the very best advice and this is exactly what Kent Reliance are doing.”
Simon Collins, product technical manager at John Charcol, said it was good to see Kent Reliance paying a retention proc fee which is marginally higher than other lenders to reflect the amount of work brokers need to do before the application reaches the point of submission.