Platform, the intermediary lender of The Cooperative Bank, has announced it will pay a procuration fee of 0.3 per cent for customer retentions.
The fee will apply from 31 May to customer renewals where mortgage advice is provided, a retention request is submitted and the customer is transferring to a new mortgage product upon maturity of their existing deal.
Customers will have access to current Platform new business interest rates across mainstream and buy-to-let ranges.
Switches can be applied for up to 90 days before the maturity of the existing deal, and customers will also have the option to apply directly to the bank for an advised or execution-only process.
Applications will initially be accepted from customers whose mortgage product matures on 31 May, with applications from customers already on the Platform Standard Variable Rate or another reversionary rate due to be accepted from 1 June.
Paul Norcott, head of Platform mortgages, said: “We are delighted to be able to offer our intermediary partners the ability to help clients switch mortgage products through Platform mortgages as part of our retention strategy.
“Giving intermediaries and their clients the opportunity to access specific product switch options with new business interest rates across our mainstream and buy-to-let mortgage product offering is an important milestone and increases our competitiveness in the market.”
Ian Ward, managing director at The Mortgage Partnership in Wirral, commented: “This is great news for the adviser industry and demonstrates a trend that is gathering pace. Hopefully more will follow suit.
“However, it is important that clients receive the correct advice to determine whether a product transfer might better suit a client’s circumstances, and that all other options have been explored first.
“Retention fees should not become a reason for unnecessary or unwelcome inertia on the part of the adviser”.
simon.allin@ft.com
