The society listened to feedback from brokers and this is the first time it will pay retention proc fees, although it will be at a different level to those paid on new business.
Skipton Building Society is piloting a proc fee retention system with Connells and London & Country with a view to extending it to the whole market in six months.
The society listened to feedback from brokers and this is the first time it will pay retention proc fees, which will be at a different level to fees paid for new business.
Paul Darwin, director of intermediary relationships, said: “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.
“It is, therefore, only right to pay a procuration fee on retained business. Whilst this will not be the same fee as we pay on new business, it is nevertheless, a fair reflection of the work carried out by the mortgage adviser.
"If successful, it is our intention to roll out this facility to other intermediaries later in the year.”
David Hollingworth, associate director of communications at London & Country, said: “We’re delighted to be involved in the pilot and to assist Skipton with the development of its retention strategy with intermediary partners. We believe that this approach will provide a better joined up process for our mutual customers.
“Being able to take the initial advice on the society’s existing borrower deals through to completion, where appropriate, will make for a smoother, more efficient process for all concerned and we’re convinced it will be popular with advisers and customers alike.”
