Woolwich launch retention procuration fee for brokers

Woolwich has launched its retention range of products to the intermediary market. They are the first major high street lender to do this. From this point on intermediaries will be paid a procuration fee if they feel best advice is for a customer is to stay with their current lender.

Woolwich has been running a pilot with Legal & General’s Appointed Representatives since November 1 2004. It has been highly successful with customers and intermediaries alike.

Martyn Smith , product marketing manager for Legal & General’s Mortgage Club, says: “The pilot has been running with all of our Appointed Representatives since November 1 2004. It has been very successful as the process is very straightforward and is another way for intermediaries to increase their income.”

Andy Gray, head of mortgages for Woolwich, says: “this is another example of Woolwich’s commitment to the intermediary market. The pilot has been hugely successful which is why we have rolled it out nationally.”

The retention range of products allows existing Woolwich mortgage customers to have the same rates as new borrowers coming to the group without the need to remortgage. This means there are no valuations or solicitors which makes it a very easy and quick process.

The move is in the spirit of the Miles report which states lenders should make their full range of products available to all borrowers.