NatWest intermediary Solutions is to introduce the payment of retention fees for brokers later in the year.
After introduction of the required technical changes, it plans to pay 20bps on completion of each case on both residential and buy-to-let business.
Graham Felstead, head of intermediary mortgages, said: “The topic of retention fees has been one that has been high on brokers’ agendas for some time.
“We fully appreciate that brokers deserve a level of recompense to reflect the work that they have to do in helping their customers to get the most appropriate deals, including when that is to remain with their existing lender on a new deal.
“In coming to our decision, we took soundings from many of our business partners to ensure our proposed plans were in line with market expectations.
“We have enjoyed a fantastic few years in building and improving our intermediary proposition and believe our plan to introduce retention fees will be welcomed by brokers as another positive change that reflects our commitment to the intermediary market.
“This announcement is one of several exciting changes we will be announcing this year which will allow us to continue to improve our proposition to intermediaries.”
Jeremy Duncombe, director at the Legal & General Mortgage Club, added: “It is great news that NatWest have followed recent announcements from other lenders by committing to paying brokers for the vital role they play in the advice process for retention business.
“It is only fair that brokers are recognised for the work they carry out in ensuring that borrowers are fully aware of the options available to them at the end of their term. Strengthening relationships between lenders and brokers will ultimately be beneficial for all, ensure better quality, choice and cost effectiveness for customers and lenders alike.
“We hope to see more big names follow suit this year.”