The mortgage lender is to launch the scheme in stages to allow a full systems upgrade to take place, but it should be fully up-and-running towards the end of August.
Halifax has also enhanced its online functionality to allow intermediaries to access further advances online, with both moves designed to help improve the service offered to brokers.
Paul Fincham, senior media relations officer at Halifax, said: “Our retention fees will pay the same as our new business to reflect the level of work done by the broker when the client reaches the end of their mortgage deal.”
Halifax has also promised a simplified product range along the lines of its current remortgage offers, with details due to be released next week.
The move was initiated by feedback from brokers, who have widely supported the idea of retention fees, and it will now be watched carefully by other lenders to see the impact on Halifax’s business levels.
Charlotte Sjoberg, press officer at Nationwide, said: “Nationwide is always looking at ways to improve the relationship with brokers but we currently have no immediate plans to change our retention policy. Having held a series of roadshows earlier in the year, we know retention fees are important to intermediaries and we are reviewing our overall retention strategy and the enhancements we can make to our relationship with them. We will also watch with interest to see the impact Halifax’s change has on the market.”
Joe Wiggins, media relations executive at Abbey, commented: “We are looking at how we can improve our customer retention but are considering our strategy carefully and not going to have a knee-jerk reaction to another lender’s decision. Customer retention is important but we have to make sure the choices available are right for the broker, their client and us.”
