Optoma Broker Solutions has signed an exclusive agreement with Kensington, which offers clients better deals for cashback products.
Cashback offered to clients on each product will increase from 250 to 1000. The only exception will be for near-prime where the cashback will be 500.
Kensington already accounts for a significant proportion of Optomas business, through its range of over 800 products. Optoma has secured the increased cashback by sacrificing some of its own proc fee.
Andrew Seymour, chairman of Optoma, says: These products will prick a few consciences. A lot is being said about treating customers fairly. Surely it is fair to offer customers the best possible product.
Optomas attitude is to drive business volume by benefiting the customer. Advisers will still receive a proc fee of up to 1%, which we think is appropriate. We are delighted that Kensington has shown such support for our model and we were comfortable to sacrifice some of our own margin to make it work.
Harpal Singh, operations director at Optoma, says: Kensington has evolved significantly this year, launching a near-prime range as well as fixed and capped rates with no early repayment charge tail. The VL1 product can be fixed at 5.64% for three years, which is nearly 0.5% lower than the closest BM Solutions product. Throw in the 1000 cashback and it is an even better deal for the consumer.