Yorkshire Building Society is setting up an intermediary subsidiary, Accord Mortgages, to extend its lending criteria away from the traditional society approach to lending.
It says the launch of Accord in March or April will give it freedom to develop products that are wanted by brokers such as loans with higher income multiples.
Yorkshire Building Society will stop paying procuration fees when Accord starts operations.
Accord will aim to issue an offer within 10 working days of getting an application for a mortgage.
The average procuration fee will be around 0.3 per cent of the loan but this can be negotiated. It will also pay additional procuration fees if a broker subsequently transfers a client to another Accord mortgage.
As well as a standard product range, the company will develop exclusive products for intermediaries which do highvolume business.
Accord will initially focus on mainstream residential lending but may expand into other more specialist areas.
Managing director Linda Will says: “Accord will start doing business from March or April. Thirty-six intermediary salespeople will move from the society to Accord and over 100 people will be dedicated to working for the company.”