The bank said it was still introducing the required technical changes, but plans to pay 20bps on completion of each case on both residential and buy-to-let business.
Since the start of the year, TSB, Coventry Building Society and last week, Family Building Society, have all confirmed plans to introduce retention fees in 2017.
Graham Felstead (pictured), head of intermediary mortgages, said: “The topic of retention fees has been one that has been high on brokers’ agendas for some time. We fully appreciate that brokers deserve a level of recompense to reflect the work that they have to do in helping their customers to get the most appropriate deals, including when that is to remain with their existing lender on a new deal. In coming to our decision, we took soundings from many of our business partners to ensure our proposed plans were in line with market expectations.”
He added that he expects the plans to be welcomed as “another positive change that reflects our commitment to the intermediary market”.
Felstead added: “This announcement is one of several exciting changes we will be announcing this year which will allow us to continue to improve our proposition to intermediaries.”
Nationwide remains the last big lender officially holding out on paying retention fees.