In March the mutual announced it was planning to introduce retention payments this year for intermediaries for recommending a product transfer.

The lender has now completed a pilot with London and Country Mortgages to fine tune the process and said it is now in a position to pay fees to all brokers for residential and buy-to-let product transfers.

According to the latest industry data, Principality was the 19^th biggest lender with a 0.6% market share and gross lending of £1.5bn.

 

Retention is a crucial area

Principality Building Society head of intermediaries Shaun Middleton said: “We’re committed to supporting brokers to provide the best possible service to their clients.

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“We believe it’s important to offer brokers a procuration fee that reflects the effort they make to ensure borrowers get the right mortgage deal.”

L&C Mortgages associate director of communications David Hollingworth said the broker was pleased to have been working on the retention trial.

“Retention is a crucial area for lenders in offering a rounded service to their customers in partnership with mortgage intermediaries.

“Principality has clearly understood that customers want the reassurance of an adviser to not only source the right deal for them, after taking account of the rest of the market, but to also be able to put that product switch into effect for them quickly and efficiently,” he added.