Platform confirms retention fee and switching process

Platform confirms retention fee and switching process

Intermediaries will receive a gross procuration fee of 0.3% for all customer renewals with mortgage advice where the deal switch completes and also where a retention request is submitted.

All new rates will be available to product switching customers across mainstream and buy-to-let ranges.

A product switch can be applied for up to 90 days before the maturity of the existing deal and customers will also have the option to apply directly to the bank for an advised or execution-only process instead.

Applications from customers with mortgages maturing on 31 May will be accepted from that date and customers on the Platform Standard Variable Rate (SVR) will be accepted from 1 June.

Paul Norcott, head of Platform mortgages, said: “Giving intermediaries and their clients the opportunity to access specific product switch options with new business interest rates across our mainstream and buy-to-let mortgage product offering is an important milestone and increases our competitiveness in the market.”


More lenders to follow

Jeremy Duncombe, director, Legal & General Mortgage Club, said: “It’s great to see Platform join the list of lenders now recognising the role that intermediaries play in the retention process for customers.

“The proposition, along with the level of fee at 0.30bps has been reached following engagement with intermediaries, and we expect more lenders to follow at this level.”

Meanwhile potential bidders for Co-op Bank have until today to submit initial offers for the loss-making business, which put itself up for sale in February. Virgin Money and CYBG, the owner of Clydesdale and Yorkshire Banks, alongside a host of private equity firms are all reportedly bidding.

Its latest results in March showed The Co-operative Bank was relying on performance in its mortgage division to help turn around its fortunes, after posting a statutory loss before taxation of £477.1m, against £610.6m in 2015.

The bank originated £3.1bn of mortgages in 2016 compared with £2.8bn in 2015 and £1.1bn in 2014 and said it planned to increase originations by £1bn each year.

Co-op praised its “award-winning” intermediary channel Platform, which accounted for 91% of completions. The retail mortgage book grew by 5% to £14.1bn from £13.4bn in 2015, representing 1.1% market share.