Kent Reliance has launched a product transfer scheme that pays a procuration fee for brokers, the first of its type from a specialist mortgage lender.
The ‘Choices’ scheme covers all products in its range, while the transfer process will not usually require a revaluation of the property or the need for a solicitor, so there are no more additional borrower costs; except applicable product fees.
In recognition of the importance of getting good consumer outcomes, customers will be advised to speak to their broker before selecting a new product, the lender added.
Adrian Moloney, sales director at parent group OneSavings Bank, said it was important to confirm the firm’s commitment to brokers by offering a scheme that rewards the value and expertise that they bring to client relationships.
“We recognise that good advice is appropriate throughout the life of the loan, so encouraging borrowers to speak to their broker at product maturity was the right thing to do, even if that opens up the possibility of them going to another lender,” he stated.
“The process has been designed to be as smooth as possible, and we already have our sights set on further improvements in the coming months.”
“We hope this becomes the norm in the market before long, but brokers need to play their part by proactively contacting customers to ensure they are benefitting from the best rates possible.” Jeremy Duncombe Brokers have recently hit out at procuration fees not keeping pace with their workload, particularly at the end of mortgage contracts, with accusations that lenders are looking to take clients back to direct relationships.
Andrew Montlake, director at London-based Coreco, called this a welcome move, marking them out as a lender which recognises the hard work brokers do when considering a retention product.
“As a specialist lender often dealing with complex cases, it is important to ensure that their customers continue to get the very best advice and this is exactly what Kent Reliance are doing,” he added.
Legal & General Mortgage Club’s director Jeremy Duncombe added: “We hope this becomes the norm in the market before long, but brokers need to play their part by proactively contacting customers to ensure they are benefitting from the best rates possible.”
peter.walker@ft.com
