A number of mortgage brokers are still unhappy with Santander’s policy of writing to customers in advance of their mortgage deals ending – preventing them from gaining commission from retention proc fees.
Santander started paying all brokers who arrange a product transfer 0.20% in March but some intermediaries are complaining that the lender is going direct to clients at least four months in advance of their deals ending.
Donald Mackay, director of Mortgage Information Centre in Hamilton, said: “I think contacting the clients four months in advance is rather early because mortgage rates could change.
“The broker is being bypassed when it comes to product transfers.”
Rob Ashley-Roche, principal of Bournemouth-based Rest Assured Mortgaged, felt a similar grievance.
He said: “I’ve got a client who’s coming to the end of his deal at the end of November.
“I emailed him in July but he had already agreed to do the deal with Santander direct. However rates are coming down and he should have waited.”
East London mortgage broker Jonathan Burridge agreed that Santander stands out as a lender that’s extremely proactive in notifying clients.
He said: “It is down to the broker to be aware of lenders’ plans and intentions.
“I would say to mortgage introduces ‘more fool you’.
“Understand the lenders in the market, their attitudes towards intermediaries and customers and plan around that.”
All three brokers said they give Santander a wide berth with new business owing to the issues they’ve had with remortgaging customers.
A Santander spokeswoman said: “We recognise the invaluable work that brokers do and the support they provide both lenders and customers.
“In line with industry practice we issue letters (and have done for a number of years) to customers between three to four months prior to their mortgage maturing.
“We want to ensure customers have time to review the market, speak to lenders and brokers and secure the deal that is right for them.
“In the letters we issue them, we clearly say that customers have the choice in how they want to secure their mortgage; they can contact us in branch, via the telephone, online or speak to a broker.”