L&G unveils exclusive deal with Connect

5 November 2008

There will now be two fee categories for directly authorised brokers using L&G's Mortgage Club. Schedule A will be the normal fee structure at L&G but there will be no access to Connect's services.

Schedule B includes Connect's service which means proc fee levels may change - although in some cases deals via Connect actually feature higher proc fees.

Connect chases cases on brokers behalf, ensuring that deals come through on time and also texts or emails brokers' clients updates on how individual cases are going.

Currently it processes for 26 UK lenders and now as a result of the deal with L&G this figure will now jump to 37.

As part of the deal, Connect’s 600+ members will be transferring to Legal & General Mortgage Club from other distributors.

They will benefit from being paid their proc fees more quickly via L&G, as well as accessing a broad range of exclusive mortgage products.

Ben Thompson, director of mortgages at Legal & General, says: “Our new service saves brokers having to pull together all the administration needed to submit an application to a lender.

"This means they can spend more time on what they do best, which is advising and selling.

"Customers get a better service, as they are kept updated throughout the process.

"This is yet another way that we are seeking to add value with services around the whole housing transaction and this brings an added level of differentiation as well as increased choice for Club members. ”

Tony Webster, chief executive officer of Connect. says: “The current mortgage market is brutal and I believe this partnership is exactly what mortgage broker’s need - faster proc fee payments, market leading exclusive products, no administration and faster mortgage offer production.

"This partnership will allow brokers to concentrate all their time on writing new business and couldn’t have come at a better time.”