The UK’s biggest mortgage lender, Lloyds Banking Group, is set to follow Santander’s lead and pay procuration fees based on the quality of business intermediaries submit, Money Marketing understands.
It is thought Halifax and BM Solutions, two of its subsidiaries, will introduce the new system early next year with the new regime only applying to its key accounts.
Intermediaries will be told what metrics Lloyds will use to measure quality by the end of the year.
A spokeswoman says: “We are always looking at ways to ensure we receive quality business from our intermediary partners, and have been clear over recent months that we are considering linking our proc fee payment structure to the quality of business supplied.
“We will be able to provide more details as and when it’s appropriate.”
Santander switched to a quality-based payment system in July last year.
Nationwide, Barclays, Royal Bank of Scotland, Coventry Building Society and Yorkshire building Society have all said they have no immediate plans to implement a similar payment structure.
If I Were You chief executive Rob Clifford believes lenders will be forced into following suit.
He says: “To mitigate the risk of getting a flow of poorer quality business, I think it is inevitable more lenders follow suit.”