Advisers will receive a retention fee of 25 basis points if the client chooses to continue borrowing with Hodge, although the fee level may vary depending on the broker’s submission route.
Borrowers coming to the end of their product term will be directed to speak to an intermediary before choosing their next product. Hodge said that in most 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.
In April Mortgage Solutions revealed the launch of Hodge’s mainstream residential deals for older borrowers; interest-only mortgages which allow customers up to the age of 85 to apply.
The range was initially distributed exclusively through Legal & General’s key accounts and the lender has extended this to additional networks since, including TenetLime.
Steve Cox, business development director, Hodge Lifetime, said: “On the back of a hugely successful launch of the 55+ product, we are happy to confirm details of our product transfer and retention proc fee scheme. This initiative further confirms our commitment to the intermediary market by acknowledging the importance and value of expert advice to customers throughout the life of their loan.”
Jeremy Duncombe, director, Legal & General Mortgage Club, added: “As another lender joins the group who are recognising the vital part that intermediaries play in customer retention, it won’t be long before this becomes the norm and other lenders find themselves on the outside looking in.
“Hodge Lifetime continues to be forward looking, not only in terms of its innovative products, but also in its support for the broker market. They are able to add a different option for customers and brokers, and I am delighted that they have also added retention procuration fees to their proposition.”
Hodge is also cutting rates for its 55+ range, Retirement Mortgage and standard variable rates with effect from 20 September.
Its refreshed 55+ range will have a two-year fixed rate at 3.10%, a five-year fixed rate at 3.30% and a two-year discount rate at 2.99%.
The five-year fixed rate for its retirement mortgage will be cut by 60 bps and will be available at 3.79%, while its SVR will drop by 25 bps to 3.95%.
