BM defends product transfer policy

Despite criticism of its retention policy from rivals, BM Solutions says it is set to complete over 500m worth of product transfers by the end of 2006.

BM Solutions has come under attack in recent weeks for encouraging brokers to be lazy by offering them enhanced proc fees to recommend product transfers rather than remortgages.

There have also been claims that this could have had a detrimental impact on the mortgage market, wiping out 10bn in remortgages over the past month and potentially reducing the market to 220bn if the likes of Abbey follow suit.

But a spokesman for BM Solutions says: “These figures show brokers and consumers are voting with their feet. Product transfers are about offering choice.

“Critics of retention schemes are trying to strike fear into brokers but choice is a positive thing. You can’t set yourself up as an intermediary lender and then patronise brokers by suggesting they don’t want to give their clients choice.”

Alan Cleary, managing director of edeus, has hit out at BM Solution’s latest advertising campaign which claims transfers are 12 times faster than remortgages and could save clients an average of 1,300.

He challenges BM Solutions to prove its claims which he slams as misleading and outrageous.

He adds: “Many remortgage products come with free legals so what is the 1,300 figure based on? Also, at edeus we can do a remortgage in five days. How can BM Solutions be 12 times quicker?”

But a BM Solution spokesman says: “The 1,300 figure was calculated by taking a cross-section of the main lenders and comparing cost savings. In fact, the figure we used was below average.

“The 12 times faster figure comes from the fact that it takes about one day to do a transfer compared with the average reported remortgage time.”