Nationwide BSAug 21 2017

Nationwide launches retention proc fee

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Nationwide launches retention proc fee
BySimon Allin

Nationwide is to pay brokers a procuration fee for retention business for all prime mortgage applications.

From today (Monday, 21 August), the lender will pay a 0.20 per cent fee to intermediaries for all existing customers switching mortgage products.

The fees will be launched simultaneously to all intermediaries, supported by continued investment in the building society’s online systems.

Nationwide’s buy-to-let arm The Mortgage Works launched proc fees earlier in August.

Ian Andrew, Nationwide’s director of intermediary relationships, said: “Following our announcement earlier this year of our intention to offer procuration fees for retention business, we have now completed its introduction for both prime and buy to let mortgage products, enabling us to acknowledge the valuable support of our intermediary partners and provide our members with greater channel choice.”

There has been a spate of activity on procuration fees for retention business in recent months, with Santander introducing a minimum fee of £400 where the loan is £25,000 or more earlier this year.

Meanwhile Platform, the intermediary lender of The Cooperative Bank, said it would pay a procuration fee of 0.3 per cent for customer retentions from 31 May.

Mike Richards, director at London-based Mortgage Concepts Associates, commented: “Nationwide are following suit with the other major lenders. They need to do that, and those that don’t do it yet need to follow suit.

“It is something we need to do. We always say we will look at your existing lender and compare it to looking at a remortgage. Sometimes a remortgage is better, but it does take longer.”