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TMPE16: Nationwide marks out stance on retention fees

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  • 09/11/2016
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Branding lenders that do not pay retention fees as non-broker friendly has been labelled “disingenuous”, by Gary Salter, head of mortgage accounts at Nationwide.

During a lender panel debate at the 2016 Mortgage and Protection Event in Newcastle, Salter was asked by chair Jeremy Duncombe why the lender had not yet launched a model of paying brokers for retention business.

Salter said: “Our position at the moment is that we have no immediate plans and I’m not going to say we’re looking at it or thinking about it because we’ve all said that for quite some time.

“It’s something that we’ve wrestled with, but every lender has its own business model. Just assuming that a lender is broker friendly because a lender pays a retention fee or they’re not broker friendly because they don’t pay a retention fee is quite disingenuous,” he added.

Salter added that it was unfair to differentiate a lender as ‘right or wrong’ based on what fees it paid its distributors.

“The other factors that you need to look at is what the lender’s base rate is, what upfront rates they’re going to offer and criteria,” he said.

Also during the debate, Lloyds Banking Group’s mortgage products director Andy Mason highlighted the importance of brokers working together to develop and secure suitable outcomes for the end consumer.

“It’s not our customer, it’s not your customer; the customer has an infinite choice of where to go and unless we between us look after that customer they’ll go somewhere else.”

 

 

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