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Britannic profit-sharing and trail deals for intermediaries

Specialist lender Britannic Money is to launch profit-sharing joint ventures with intermediaries and start paying trail commission in a bid to build customer and broker loyalty.

The current account mortgage lender, which last month entered the sub-prime market, says joint ventures and trail are two ideas being considered in a bid to discourage churning in what it describes as a relatively fickle market.

Britannic says it is in discussions with a number of intermediaries about how it can work closely with them to split the equity and income being generated from clients as part of a profit-sharing agreement.

Pink Home Loans says it sees this proposal as a step forward from correspondent lending as Britannic would offer support to intermediaries as well as give them a share of any profit.

Britannic says that from around September, it will start paying an ongoing annual commission of between 0.15 and 0.20 per cent after any initial discount period on a mortgage ends. It says it will also continue to pay an up-front procuration fee of around 0.5 per cent.

Head of business development Bob Perks says: “We have had a good reception for these ideas so far. On trail commission, we will keep the same up-front fee rather than hammering intermediaries.”

Packager Pink Home Loans sales and marketing director David Copland says: “The jointventure idea is a step on from correspondent lending and I think their trail commission will work as its proposition still offers a reasonable up-front fee. But there are two sides and, despite trail commission, it is sometimes in the client&#39s interest for a broker to recommend a remortgage.”


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Out there lies a warm ocean of desert islands, sun, sand and palm trees, where individuals can choose how and when to tax-efficiently access their pension fund and realise the retirement dreams they have worked so hard for.


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