JEREZ 2006: Retention fees the way forward

Speaking at todays Mortgage Summit in Jerez today lenders agreed that retention fees should be the way forward for lenders,

Tim Hague, director at BM Solutions, says it is currently looking at its retention fee offering and he is sure that other lenders will follow suit.

Charles Haresnape, managing director of mortgages at Bank of Scotland says that although retention fees can help with client retention, the broker should look at charging a fee for their service to generate more income.

He says: Brokers should charge the client a fee. It is a professional service they are offering, and in any other profession a fee is charged for a service, this should be no different.

Linda Will, managing director of Accord Mortgages, says that since it introduced retention fees 12 months ago it has seen a 100% increase in business.

She adds: As an intermediary lender, we need to look at creating a long term relationship with the broker.