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Woolwich to extend retention scheme

Woolwich has moved to calm broker fears by announcing it is planning to upgrade its retention scheme to include regulated mortgages.

It is also considering plans to pay full proc fees on retained business rather than the current rate of 0.2 per cent.

The lender currently pays retention fees only on mortgages sold before M-Day on October 31, 2004. This meant its retention scheme would have been useless when two-year fixes start come up for renewal in November.

There still may be a gap for some brokers as the scheme may not be changed until the end of this year.

Intermediary business director David Finlay says details of the new scheme have yet to be determined but it could include sending brokers regular lists of Woolwich clients coming to the end of a mortgage term.

If Woolwich pays full proc fees, it will follow Halifax and BM Solutions which revealed similar plans this summer.

Finlay says: “We will change the scheme either in late 2006 or early 2007 as there are a number of regulated products coming up for retention but we have not yet decided how that will be done. We are looking at full proc fees.”

The Mortgage Practitioner sole trader Danny Lovey says: “The fact that they are changing the scheme is positive as there were concerns.”

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