Nationwide Building Society plans to pay mortgage brokers a procuration fee for retention business.
It is expected that the fees will be introduced by the summer and will be launched simultaneously to all intermediaries, with no phased roll-out.
A procuration fee of 0.2 per cent for retention business will be paid to intermediaries for all existing customers switching product and will include both prime Nationwide lending and for its specialist buy-to-let arm, The Mortgage Works (TMW).
Nationwide has been working for some months to invest in its online systems and develop the technological functionality to enable brokers to switch products and be paid a procuration fee.
While this development is ongoing, the society expects to be able to launch procuration fees for retention business by the summer.
Ian Andrew, managing director of intermediary relationships for Nationwide, said: “Nationwide has long valued the support and hard work of its intermediary partners and would like to thank them for their patience while development work was ongoing.
“We are now in a position to signal our clear intention to pay a procuration fee for retention business later in 2017. All intermediaries will have access to our full range of switcher products and our market-leading online process from day one.
“As a building society owned by its members, we remain committed to prioritising member benefit and customer loyalty and can confirm that the full range of prime loyalty products will be available through the broker channel.”
“We will be confirming an exact date for launch nearer the time.”
Nationwide’s announcement came after Santander revealed earlier this month that it will be introducing a minimum procuration fee of £400, where the loan is £25,000 or more.
David Hollingworth, associate director of communications at L&C Mortgages, said Nationwide’s addition to the growing list of lenders that are actively recognising, involving and rewarding brokers for their role in advising existing borrowers was another big landmark in the changing approach to retention.
He said: “With such a competitive market lenders clearly understand the importance of looking after existing customers and enabling intermediary partners to assist and execute a product transfer for a customer can only improve the client experience.”