Brokers have long argued for a financial incentive when remortgaging to the same lender and BM introduced a full procuration fee on its remortgage business in June.
Since that announcement, and Halifax’s retention launch in July, the implications of payments have been debated fiercely but BM Solutions insisted brokers are almost 100 per cent behind the idea of retention fees.
Tim Hague director of BM Solutions, said: “We knew from our recent volumes that brokers obviously believed in this initiative. We were also convinced that if the best deal available for a customer is with their existing lender then placing repeat business does not go against ‘Treating Customers Fairly’ (TCF).
“I am glad this research confirms what we believed – that brokers resoundingly agree. It once again shows BM Solutions putting consumers and mortgage intermediaries first and foremost in all of our developments.”
The research, which questioned 200 intermediaries, also highlighted 91 per cent of brokers believed retention fees did not go against the principles of TCF.
The major worry for the regulator when it comes to retention fees is whether brokers can prove they have looked at the whole of the market before re-placing the case with the same lender.
However, brokers have argued that they should be reimbursed for putting the work in to remortgage the client, even if they end up staying put.
Frank Thurlby, compliance officer at the GHL Group, commented: “Unless the product on offer is cheapest and the best available for the client, it should not matter if the lender offers a retention fee. It’s always a nice gesture but the broker should not be influenced by the money on offer.”
