Woolwich unveils retention scheme

The Woolwich has launched its range of retention products to the intermediary market.

Intermediaries will be paid a proc fee if they feel the best advice for a customer is to stay with their current lender. The Woolwich says it is the first high street lender to do this.

The move will also stop intermediaries needlessly remortgaging clients onto new deals to secure a proc fee.

The lender has been running a pilot scheme with Legal & General’s app-ointed representatives since November last year.

Martyn Smith, product marketing manager for L&G Mortgage Club, says: “The process is straightforward and provides a way for intermediaries to increase their income.”

The retention products allow existing customers of The Woolwich the same rates as new borrowers without the need to remortgage. This also removes the need for valuations and solicitors. The Woolwich says the move is in the spirit of the Miles report which said lenders should make their full ranges of products available to all borrowers.

Andy Gray, head of mortgages for The Woolwich, says: “The pilot was successful so the scheme is being rolled out on a national basis.”