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Brokers unhappy as Accord retention fees axed

Accord Mortgages has stopped paying retention fees to brokers whose clients have an existing credit repair mortgage but do not improve to prime status by the time they remortgage.

The lender has also axed retention fees on other product transfers for existing borrowers who fall outside its new business criteria, for example, where the loan to value is over 90 per cent.

Accord has also increased the notice period it gives to brokers whose clients’ mortgages are due for renewal from 90 days to 120 days. If the broker fails to contact the borrower in this time, Accord will get in touch with the client direct seven weeks before their deal matures to offer them a remortgage rate.

My Mortgage Direct director Cath Hearnden says: “This is a step back as brokers were hoping to see more lenders paying retention fees.

“Accord is penalising brokers for their clients’ missed payments as it is still offering to take the cases, just not pay the fee.”

Accord managing director Charles Canning says: “Accord remains one of the few intermediary lenders offering procuration fees on existing borrower transfers to its intermediary partners.”

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