Commission could push brokers to sell surveys

E.surv and Colleys are considering paying commission to mortgage brokers to sell private surveys.

The surveying firms have previously launched pilot schemes where they offered commission to brokers, but the response was disappointing.

However, at a recent Mortgage Strategy round table, Jack Saxton, head of surveying and valuations at Colleys’ parent Lloyds Banking Group, told attendees that commission may still have a role in getting brokers to sell surveys.

He says: “If the average proc fee is around £350 and we pay, say, £25 per survey it won’t hit brokers’ radars. I think we may need to look at paying bigger commission.”

Richard Sexton, business development director at e.surv, says it will soon offer surveys through First Complete and Pink Home Loans, also owned by e.surv parent LSL Property Services.

He says: “We have tried to pay commission to brokers in the past but take-up has been disappointing. It’s probably because brokers are concerned that if borrowers use a private survey the sale will not proceed. However, where commission is appropriate we will look at offering it again.”

He says lenders realise they should offer surveys to clients as part of Treating Customers Fairly principles.

Sexton adds: “Brokers must realise that they need to be active in selling surveys otherwise lenders will offer them directly to customers instead.”

E.surv ran a pilot with a lender last year which it says was successful.

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