Skipton Intermediaries is launching a six-month mortgage retention pilot with two of its key distributors, Connells and London & Country, and will be paying a procuration fee.
Paul Darwin, director of intermediary relationships, said: “Research and feedback from our broker supporters suggests this is the number one area they would like us to be involved in, so we are really pleased to announce the launch of this mortgage retention pilot.
“Good and appropriate customer outcomes are central to this pilot and we recognise that brokers carry out a full advice process with our customers, including appropriate market research before making a recommendation to the customer to stay with us.
“It is, therefore, only right to pay a procuration fee on retained business. Whilst this will not be the same fee as we pay on new business, it is nevertheless, a fair reflection of the work carried out by the mortgage adviser. If successful, it is our intention to roll out this facility to other intermediaries later in the year.”
Adrian Scott, Connells Group mortgage services director, said: “Here at Connells we very much welcome the introduction of Skipton’s mortgage retention pilot . The issue of paying brokers on retaining business for lenders has been building over the last few months so it’s good that Skipton are recognising the work we do and the full advice process we carry out. This move by Skipton Intermediaries can only be good news for the industry.”
David Hollingworth, associate director communications at L&C Mortgages, said: “We’re delighted to be involved in the pilot and to assist Skipton with the development of its retention strategy with intermediary partners. We believe that this approach will provide a better joined up process for our mutual customers.
“Being able to take the initial advice on the Society’s existing borrower deals through to completion, where appropriate, will make for a smoother, more efficient process for all concerned and we’re convinced it will be popular with advisers and customers alike.”
