They have pointed to the consumer and broker benefits of retention policies. Over recent months, consumers have, for the first time, been able to compare a product transfer, without remortgage costs, against the best available remortgage deals in the market. And brokers have been fairly rewarded with a full procuration fee for a product transfer.
John Malone, managing director of PMS, said: "Recent retention policies mean that, providing the checks and balances are in place, consumers have a choice between a product transfer and the best remortgage deals in the market. In return brokers get fairly rewarded for a fair day's work. It will also mean that it's more likely that the consumer's mortgage is paid off at the term agreed at the outset, as opposed to lengthening the term when moving to another lender."
Rob Griffiths, associate-director of AMI, said: "It is very powerful for a broker to sit down with a consumer and be able to offer them a choice of options, not just a remortgage. Brokers are highly trained and regulated consultants who can guide consumers through the options available.
"We have issued a factsheet for our members to clarify what the FSA would expect. Provided all the standard procedures are followed, then we fully expect consumers and brokers to benefit from additional choice that product transfers bring."
Tim Hague, director, BM Solutions, said, "Product transfers are a win-win-win for consumers, brokers and lenders. Consumers have a choice, brokers get rewarded for a fair day's work and the lender has the opportunity to lengthen the customer relationship. We have heavily invested in our online facility to ensure that the process is quick and easy for brokers."
