The incentive can be used to either boost the brokers’ income or be passed on as a benefit to their clients. It will apply to any mortgage applications, except Mortgage Trust.
Justine Tomlinson, marketing director at Mortgage Next, said: “Mortgage Next has received an increased level of packaged business during 2006 and we want to incentivise those brokers who may not yet have tried our packaged service to give it a go. The extra £100 can be passed on to the client as an additional benefit or be used by brokers to enhance their income.”
Andy Frankish, managing director of Mortgage Talk, said: “We’ve seen a lot of lenders do similar things and it will be on people’s minds to a certain degree, but you have to be focussed on the client’s needs. As long as the service is there and the products are suitable then it will work. It’s a sensible business decision, because if a broker uses Mortgage Next for the £100 and the service is good, then they will use it again. Personally, I don’t think it will have a massive impact, but, at the end of the day, business is business and any incentives for brokers are good.”
However, the scheme has come under attack from other market players. Thomas Reeh, chief executive at blackandwhite.co.uk, said: “I just see this as another packager trying to improve its volume of business. Right now it’s tough for packagers generally, because more and more business is done directly and through online facilities. On a non-conforming deal, £100 won’t make much difference. It might be an incentive for a self-employed intermediary who works from home, but generally I don’t think it will make much difference to the market.”
