Virgin Money will be paying a gross procuration fee of 0.38 per cent on retention business from today (4 July).
Last month, the bank announced the next stage of its intermediary market push by allowing brokers to take part in the product transfer process
Peter Rogerson, Virgin Money’s commercial director for mortgages, told FTAdviser that letters were being sent out to adviser partners ahead of a new system going live in early July that will allow them to see what deals are being offered at the end of a client’s mortgage term.
Now, it has confirmed the procuration fee to be paid for returning an existing mortgage customer to Virgin Money upon maturity of their existing product.
A quick online process has been developed for intermediaries and their clients to follow, which includes the option to apply for a product transfer up to 120 days before maturity takes place.
Mr Rogerson said: “This is further evidence of our commitment to the intermediary market and our strong belief in a fair day’s pay for a fair day’s work, as we think that is what a true partnership is all about.”
Jeremy Duncombe, director of the Legal & General Mortgage Club, said the retention fee is “brilliant news” for mortgage brokers.
“As Virgin Money continues to lead the way on proc fees, we hope to see more lenders follow and reward brokers accordingly, for the vital service they provide to the market,” he added.
Back in May, brokers called on lenders for more action on procuration and retention fees, stating the payments have not kept apace with increased workloads.
Martin Reynolds, chief executive SimplyBiz Mortgages, suggested the product transfer market will be growing over the next few years and lenders that embrace the intermediary within this sector will be welcomed.
peter.walker@ft.com
