The bank, which launched into the intermediary market two years ago, will pay out the fee when brokers transfer Bank of Ireland existing customers.
A handful of lenders have moved to sweeten the deal for brokers in recent months, with Virgin Money and Precise Mortgages some of the lenders now offering a procuration fee for retention business. Earlier this year, Skipton Building Society launched a pilot for a proc fee paying retention system through Connells and London and Country.
Alison Pallett, director of sales at Bank of Ireland for Intermediaries, said: “We have close working relationships with our partners’ networks and are seeking to introduce improvements in response to changes in the market and to make it easier for brokers to do business with us.
“The payment of a retention procuration fee recognises the additional work brokers are now required to carry out when offering full advice to customers who stay with their existing lender.”
Paul Shearman, proposition director at Openwork, said: “I am delighted to see Bank of Ireland rewarding advisers for their work in managing on-going relationships with clients. More lenders will follow and I believe that retention fees will be the norm within the next 18 months.”