The lender is to set its proc fees to 2% of the amount released and is also introducing a 0.1% trail fee.
Duncan Young, managing director of Retirement Plus, says: “This is partly an incentive to encourage brokers to offer equity release but it also recognises that brokers need to be paid for the work they do.
“People see equity release as the last financial decision they will have to make but it is a complicated process that takes a long time. This means there is a lot of work for brokers to do to finalise deals.”
He adds: “We have set the standard in the industry and are sure other lenders will follow.”
Dean Mirfin, business development director at Key Retirement Solutions, says: “A lot of providers have battled hard to make proc fees financially viable in this sector but if Retirement Plus has achieved it and is able to reward advisers, that’s great news.”
Retirement Plus is also waiving fees payable by home owners for a limited period, meaning valuation fees and impaired life application fees are payable on application but refundable on completion.