BM launched the initiative earlier this year in a bid to prevent clients jumping ship and reward brokers who moved existing BM customers with adverse credit to another one of the lender’s mainstream products. The pilot is set to run until mid-July, after which time BM will review broker feedback to determine the scheme’s success. A source told Mortgage Introducer that BM had written to brokers to confirm the immediate extension of the retention scheme.
Matthew Grayson, head of PR at BM Solutions, confirmed the success of the pilot. He said: “The initiative has proved very successful and we are currently working with brokers to get feedback on its development.”
Peter Wright, financial adviser at CBK, welcomed the extension of BM’s pilot and said it was a move in the right direction for the industry. He said: “Lenders are cottoning on to the fact that getting initital business and failing to keep it is wasting time and money. The relationship between the broker and the client is a long-term one and BM’s announcement is a step towards recognising this.”
The move by BM has added to speculation that a number of HBOS brands are responding to broker calls for recognition of client retention and ownership. In MI last week, an industry source revealed Halifax is expected to launch a retention fee within the next two months. They also informed MI that the Bank Of Scotland (BoS) and Intelligent Finance (IF) are currently reviewing their overall retention strategy.
Paul Fincham, spokesperson for the Halifax, said: “Anything that improves the relationship between intermediaries and lenders is of great importance. We are always reviewing our strategy for ways to improve this.”
