Virgin Money customers coming to the end of their mortgage terms will be directed to mortgage brokers from July with the launch of a switching service.
If the broker directs the customer back to Virgin they will be able to profit from a retention proc fee and use a streamlined process – although the proc fee will be lower than for new business.
Virgin Money’s mortgage director Peter Rogerson ambitiously targeted becoming a top six lender by tapping into the intermediary channel, which already brings around 90% of its mortgage business.
Virgin has already created the findamortgagebroker.co.uk website where mortgage brokers can register their details.
Rogerson said: “From early July we will launch a product switching service. On Virgin Money online the latest products will appear on screen and we will pay the broker for giving advice if the customer comes back to us.
“It’s about making the whole journey easier for the broker – and because we’ve built this super slick system they won’t have to deal with the paper chase associated with conducting mortgage business.
“The market is going to love this because it’s been asking for retention proc fees for a while.”
Rogerson has lofty ambitions for the lender – and he feels investing in intermediaries is the best way to achieve those ambitions.
He added: “We have a commercial agenda that says the more we help this channel the faster we will grow – we are not doing it to get business we don’t deserve to get.
“We want to be a top six lender – if we invest heavily in this channel there is no reason we can’t get there.
“We don’t want to stay the same size. Our ambition is to grow faster than the market.”
Last week Virgin Money announced the launch of a national advertising campaign in newspapers and radio promoting the benefits of using mortgage intermediaries.