Brokers want all lenders to pay procuration fees for recommending a product transfer over a remortgage, an Intermediary Mortgage Lenders Association report surveying brokers and lenders has revealed.
One lender hit back, suggesting that if brokers are paid for product transfers they would find it easier to recommend staying put with the same lender, since a product transfer involves less work than a remortgage.
And one lender said 40-50% of product transfers are conducted by customers online, with technology simplifying the process and making the process smoother for the consumer.
The report is called ‘Insights into the changing shape of the lender broker relationship’.
This morning Nationwide and TMW announced plans to offer a 0.20% proc fee on retention business in the summer.
Brokers also want transparency on product transfer business, which is estimated to be worth £80-100bn of which 15% involves an intermediary.
With such a significant share of the market being execution-only a broker pointed out that the customer’s circumstances could have changed since the loan was made.
The brokers questioned were Ray Boulger, senior technical manager at John Charcol, Patrick Bunton, director of London & Country Mortgages, Martin Reynolds, chief executive of SimplyBiz Mortgages and Jon Round, financial services director of the LSL Group.
The lenders surveyed were Alan Cleary, managing director of Precise Mortgages, Brad Fordham, managing director of– Santander for Intermediaries, Charles Haresnape, group managing director, mortgages, at Aldermore Bank and Kevin Purvey, director of intermediaries at Coventry Building Society.