The green lender is to pay 0.35 per cent on each residential mortgage case, with broker remuneration ranging from £300 to a maximum £1,000.
The move follows a trial period and the lender admitted that it hoped the current awareness over green issues, coupled with the introduction of procuration fees, would drive the uptake of Ecology BS products.
Paul Ellis, chief executive of Ecology, said: “We have always appreciated the hard work done by introducers – especially as our lending is not always straightforward and sometimes requires a greater level of involvement. We have always been happy to receive introduced business and are now rewarding brokers by offering these fees.”
However, while brokers welcomed the move, they did not believe that it would create a spurt of broker business.
Jason Richardson, director at YooToo Financial Services, said: “At the end of the day, it has to be the best product for the client, unless they are specifically demanding green investments or borrowing. I’ve not had a green mortgage enquiry yet but now Ecology is offering procuration fees, that has to be a good thing.”
James Carter, principal of Independent James, added: “If the lender doesn’t pay a procuration fee and you have to charge a fee, often clients aren’t willing to pay upfront. Ultimately, people are concerned with the bottom line and if they can add insulation to their home in an effort to be green, they’ll do that rather than through a green mortgage.”
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