Skipton is to roll out the payment of procuration fees for all product transfers to the whole market before the end of the year.
The procuration fees will be 0.3 per cent for residential mortgages and 0.35 per cent for buy-to-let products.
It follows a six-month pilot scheme with two of Skipton's key distributors, Connells and London & Country, which began last April and was followed by a wider roll-out.
Paul Darwin, Skipton’s director of intermediary relationships, said: “We believe it is only right to pay a procuration fee on retained business to recognise the work undertaken by our broker partners.
“Good and appropriate customer outcomes are central to this pilot and we recognise that brokers carry out a full advice process with our customers, including appropriate market research before making a recommendation to the customer to stay with us.”
Mike Richards, director at London-based Mortgage Concepts Associates, said: “That is brilliant. It is really useful, and it brings them in line with most of the other major lenders.”
simon.allin@ft.com
