The building society has been looking at how the fee would work, how much it would be and how it would be paid. The review is part of its assessemnet of its overall retention straetegy and enhancements to its intermediary relationships.
Commenting on the review, Tim Hughes, head of intermediary markets at Nationwide, said: “We are committed to the intermediary marketplace and are reviewing our retention strategy, which includes the introduction of a retention fee across our product range. We are trying to determine if this adds value to the broker population and if this is something we would feel comfortable introducing at Nationwide BS.”
The move follows news that Halifax is due to launch a retention fee across its products in the coming weeks, with its fellow HBOS brands likely to follow suit. Mortgage Introducer revealed the lending giant was currently reviewing its retention strategy across the board and if it decided to introduce a fee, the implications across the market would be huge.
Currently, Accord Mortgages and Woolwich are the only lenders paying a fee to intermediaries who keep remortgaging clients on the books. However, while calls for the introduction of the fee have been widespread, concerns have been raised regarding how it will impact on the income stream of intermediaries as retention fees are likely to pay less than re-broking fees.
Rod Murdison, proprietor at Murdison & Browning, said: “The introduction of retention fees is a good thing. If an intermediary does the work for a remortgaging client who stays with the same lender, they should be paid. However, brokers are obliged to give the most suitable advice and if this comes with a fall in income, then will they have to address this with an increase in fees?”
