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Tesco Bank confirms retention fees

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  • 19/04/2017
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Tesco Bank confirms retention fees
Tesco Bank has confirmed it will be offering a retention proc fee for brokers.

Last year the bank suggested it was “warm to the idea” of using retention fees and has now confirmed it will follow the leading lenders in doing so.

It will release the details of the exact value of the commission closer to the first of its maturities next summer.

“We know that retention is an important issue for the intermediary market,” said Tesco Bank products director Julian Hartley.

“While we are more than 12 months away from our first broker maturities, it is our intention to deliver a best-in-class broker retention process that is quick and simple. Nearer the time, we will confirm the level of procuration fee; one that recognises the effort of the broker,” he added.

Many lenders have initially opted for a 0.2% or 0.3% fee.

 

Expanding distribution

Tesco Bank entered the intermediary mortgage market last April and has been expanding its broker reach, a process which will continue.

“We have been rolling out and will continue to roll out the brokers through which we are distributing – that will help us to serve more Tesco customers and we want to be as competitive as we can,” Hartley said.

Citing positive responses from broker research, Hartley added that he was pleased with the bank’s progress so far.

“We’ve met our initial expectations, we’re very pleased with the results we’re getting.

“The feedback we’ve had is nearly 85% of brokers are very happy with us and the service they are getting from us and commercially we are where we wanted to be,” he added.

Watch the full Tesco Bank video interview with Julian Hartley here.

 

Tesco Bank’s full intermediary panel is:

  • Legal & General Mortgage Club
  • London & Country
  • Alexander Hall
  • First Mortgage Direct
  • Savills PF
  • Springtide
  • HomeLoan Partnership
  • Stonebridge
  • John Charcol
  • Mortgage Advice Bureau
  • Openwork
  • The Finance Planning Group
  • Charles Cameron & Assoc
  • Knight Frank
  • Kingsgate Law
  • LSL
    • First Complete
    • Advance Mortgage Funding (Pink)
  • Mortgage Intelligence
    • Mortgage Intelligence
    • Mortgage Next
    • Life & Easy

 

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