Santander will be introducing a minimum procuration fee of £400, where the loan is £25,000 or more, from next week.
The change follows Santander’s recent decision to begin paying brokers a procuration fee of 0.2 per cent on retention business.
Brad Fordham, managing director of Santander for Intermediaries said: “The work the intermediary market does is invaluable.
“We understand the amount of work that goes into new business cases, irrespective of the size of the customers’ mortgage and the introduction of a minimum procuration fee is recognition of this.”
The roll-out of these payments across networks and mortgage clubs will start from 1 March and be fully in place by the 1 July.
Earlier this week Santander launched its lowest ever fixed rate mortgage product – a 60 per cent loan-to-value, 18-month fixed 0.99 per cent with a £1,499 product fee.
Last month Santander revealed its net mortgage lending was more than £1bn lower in 2016 after its decision to compete on customer service rather than price.
