View more on these topics

Precise launches retention range with proc fees for brokers

Cleary-Alan-2012-700x450.jpg

Precise Mortgages has launched a retention program for customers coming to the end of their initial fixed or discount deals and will be paying procuration fees when deals are arranged by an adviser.

The lender says that it will be writing to eligible customers up to three months in advance to inform them that their initial rate is coming to an end and offering additional product options.

It promises that the letter will clearly inform the customer that they should refer to their broker if they require advice.

If the customer chooses not use a broker they will be able to transfer to a new rate on an execution-only basis.

Where a broker gives advice and the customer switches to a new product with the lender a procuration fee of 0.25 per cent will be payable.

It is offering a two-year fixed rate, two-year tracker or a five-year fixed rate, all of which have no lender fees.

As the lender already has all the information it needs to complete the transaction, the process will be straightforward and will require minimal paperwork, no conveyancing and no underwriting.

Precise managing director Alan Cleary says: “The numbers of customers coming to the end of their deals with us is quite small at the moment but will become significant in 2017 and beyond.

“We are in test and learn phase for the next six months and will make changes as appropriate.

“The one thing I am certain of is that this gives customers and brokers more product choices which I believe is a good thing.”

L&G Mortgage Club director Jeremy Duncombe says: “This is good news for customers and brokers with Precise Mortgages doing the right thing and paying brokers for the work they are doing.

“Precise Mortgages join a growing list of lenders who are recognising the vital role of the broker in giving best advice to the customer when their rate matures.

“We expect more lenders to follow in making this the norm.”

Recommended

HSBC-Logo-Branch-Building-700x450.jpg

Osborne blocked HSBC prosecution in money laundering probe

The Chancellor George Osborne and the FSA intervened in US investigations that could have seen HSBC prosecuted for money laundering. A US Congressional investigation published yesterday, claims the regulator “hampered the US government’s investigations” and “influenced” the decision not to prosecute Britain’s biggest bank, Sky News reports. The report adds: “George Osborne, Chancellor of the […]

Mortgage-House-Coins-Wallet-House-700x450.jpg

FCA set to close loophole in consumer buy-to-let

The City watchdog plans to close a regulatory loophole that leaves the Financial Services Compensation Scheme liable for paying claims made against brokers who advise on consumer buy-to-let. Although the Financial Conduct Authority does not regulate this sector of the market, brokers need a supplementary permission to advise on such cases. The FSCS normally does […]

Bank-of-England-Building-BoE-Bus-700x450.jpg

Bank of England assessing multi-asset impact of property fund gating

The Bank of England is “actively working” with firms to deal with the impact the gating of property funds will have on multi-asset funds. Mortgage Strategy sister title Fund Strategy understands The Bank of England will tackle any “second order effect” gating property funds might have on multi-asset funds and any others holding those property funds. […]

Tree - thumbnail

The politics of healthcare

Healthcare is already one of the key battlefields in May’s general election, with each of the main parties committing to deliver improvements to the NHS and public health.

Stop letting targets get in the way of delivery

The positivity at RESI was pleasing to see, with lots of encouraging discussion about the private rented sector (PRS), the possibility (or hope) of stamp duty cuts on the way in the Autumn Statement and the general prospects of residential property in this post-Brexit vote world. However, that positivity was often tinged with some negativity […]

Newsletter

News and expert analysis straight to your inbox

Sign up