L&G Mortgage Club has partnered with GOTO Estate Agency to launch a referral service enabling brokers to recommend estate agents to clients and earn commission on completed property sales.
The service is designed to keep advisers involved beyond arranging the mortgage by allowing them to refer sellers to estate agents through the GOTO platform.
Brokers can select from a list of 10 agents operating in their client’s local area, while remaining connected to the transaction as it progresses.
The proposition also provides advisers with referrals generated from people viewing their client’s property, potentially creating further mortgage leads.
COMMISSION ON COMPLETED SALES
GOTO said the model was designed to provide value across the transaction, with sellers receiving an agent recommendation and cashback towards their move, while buyers have access to an upfront legal pack.
Estate agents, meanwhile, receive instructions originating through the broker channel.
The company claimed ordering the legal pack when the agent is instructed could reduce the period between an accepted offer and completion from 125 days to 75 days.
It also said its cashback proposition could increase the proportion of buyers completing their purchase from around 70% to more than 90%.
‘BROKER STAYS IN CONTROL’
Nigel Hoath (main picture, inset), chief executive officer of GOTO, said: “Brokers have always been able to recommend conveyancing and surveys to their clients. Now we can offer all of that plus the ability to recommend an estate agent, all on one simple platform.
“This means brokers can point clients towards a reputable agent they trust and reassure them that what is likely their biggest transaction, is in safe hands. The broker stays in control of the whole moving journey, and any referrals from viewers of the client’s property come back to the broker, so they benefit from the journey and gain new leads too.
“It’s a clear win-win for everyone. The cost to the client is typically less than 1% including VAT, which represents great value for money, while reducing time and increasing the likelihood that a buyer completes on the purchase.”
BEYOND THE MORTGAGE
L&G Mortgage Club has supported more than £1.2trn of mortgage completions since its launch in 1995 and is involved in nearly one in four UK mortgages.
Clare Beardmore, director of L&G’s Mortgage Club business, said: “Mortgage brokers play a vital role in helping clients understand their options, make informed decisions and navigate the home-moving process with confidence.
“This exciting partnership makes it easier for our Mortgage Club members to support their clients beyond the mortgage process, while strengthening relationships and delivering better outcomes at every stage of the journey.”
