Virgin Money to pay brokers for product transfers

Virgin Money to pay brokers for product transfers

This week Virgin Money is beginning 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, said 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.

This will enable intermediaries to submit product transfers for existing Virgin Money customers, with a “competitive retention fee” for doing so, he explained.

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Earlier this month, the lender launched a national advertising campaign promoting the benefits of buying a mortgage through an intermediary, encouraging consumers without an adviser to visit a newly-created Virgin Money directory, which more than 8,000 intermediary partners have signed up to.

The bank’s intermediary push began in February 2015, with a ‘manifesto’ for brokers, comprising commitments to the market, including notice before mortgage rate increases; no under pricing of deals to make them cheaper direct; dedicated business development managers; and “competitive” procuration fees.

Last month, brokers called on lenders for more action on procuration and retention fees, stating the payments have not kept apace with increased workloads.

Kent Reliance has since launched a product transfer scheme paying a procuration fee for brokers, covering all the products in its range.