Research conducted by an industry source showed that while Halifax had plans to roll out the scheme within the next two months, both the Bank of Scotland (BoS) and Intelligent Finance (IF) brands of the lending giant were currently reviewing their overall strategy on paying retention commission.
IF confirmed that while it did not currently pay a retention fee to intermediaries, its stance on currency commission was being reviewed.
Jennifer Blackwood, spokesperson for IF, said: “We are approaching a time when borrowers are starting to remortgage and while we have no definite plans, we are reviewing our retention strategy as a whole. We are very keen to work with intermediaries to ensure they re-place the business with us.”
An industry source said: “The subject of paying a retention fee has been on and off HBOS’ agenda for the past year or so and the whispers are growing louder, so an announcement may be imminent. If it is the case, then the implications to the industry are huge due to the sheer size and impact that HBOS can have on the lending market.”
There have been industry-wide calls from intermediaries for more lenders to introduce retention fees to reward brokers for keeping borrowers on the books. Earlier this year, BM Solutions, also part of the lending giant, launched a credit repair initiative that rewarded brokers that moved existing BM customers to another one of the lender’s products. Although it refused to call this a retention fee, the lender admitted it was an attempt to build relationships between the lender and the broking community.
Both Halifax and BoS were unavailable for comment.
