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Woolwich deal offers proc fee on high street

The Woolwich is piloting a scheme allowing mortgage brokers to introduce their clients to a high-street range and still get a form of procuration fee.

If a Woolwich client wants to remortgage, for example, when a fixed-rate period comes to an end, the mortgage broker can introduce clients to the Woolwich’s deals and rates previously only available on the high street. The move follows a similar campaign from First Active launched in November.

The lender says the move is in the spirit of the Miles report which states lenders must make their full range of products available to all borrowers.

Woolwich retail press officer Ellie Waters says: “So far, we have been getting positive feedback from brokers over the initiative.”

Accord Mortgages is also opening up part of its product range and offering procuration fee incentives to brokers for rebroking with them. It says it will pay procuration fees to intermediaries who advise clients to stay with them when they come to the end of their special deal period. Transfers can be processed online and brokers still get a flat fee of 0.2 per cent. Accord says this facility will be available from April.

Accord managing director Linda Will says: “Of course, the broker would have to look at the whole of market but if one of our deals is good value, why shouldn’t they come back to us?”Mortgage Portfolio Services mortgage planner Simon Chalk says: “I think that we have got to take a step back here. Who would benefit from this except, for example, a multi-tie? Regulated mortgage advisers have to look at the whole of market. This has got limited appeal.”

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