Skipton Building Society is set to launch a mortgage retention pilot and will be paying a procuration fee.
The six-month pilot will be with Connells and London & Country.
The lender will not be paying a full proc fee for retention business, but it is not disclosing what this will be as it could change during the pilot.
If it is successful, the pilot will be extended to the rest of the market later this year.
Director of intermediary relationships Paul Darwin says: “Research and feedback from our broker supporters suggests this is the number one area they would like us to be involved in, so we are really pleased to announce the launch of this mortgage retention pilot.
“Good and appropriate customer outcomes are central to this pilot and we recognise that brokers carry out a full advice process with our customers, including appropriate market research before making a recommendation to the customer to stay with us.
“It is, therefore, only right to pay a procuration fee on retained business. Whilst this will not be the same fee as we pay on new business, it is nevertheless, a fair reflection of the work carried out by the mortgage adviser. If successful, it is our intention to roll out this facility to other intermediaries later in the year.”
London & Country associate director of communications David Hollingworth says: “We’re delighted to be involved in the pilot and to assist Skipton with the development of its retention strategy with intermediary partners. We believe that this approach will provide a better joined up process for our mutual customers.
“Being able to take the initial advice on the society’s existing borrower deals through to completion, where appropriate, will make for a smoother, more efficient process for all concerned and we’re convinced it will be popular with advisers and customers alike.”