"As Virgin Money continues to lead the way on proc fees, we hope to see more lenders follow and reward brokers accordingly, for the vital service they provide to the market."
Intermediaries will be paid a procuration fee of 0.38% for returning an existing mortgage customer to Virgin Money upon maturity of their existing product.
A new online process has been developed for intermediaries and their clients to follow, which includes the option to apply for a product transfer up to 120 days before maturity takes place.
Peter Rogerson, Director of Mortgages at Virgin Money, said: “Virgin Money understands the value that intermediaries bring when they return their clients to our business, and that’s why we have decided to invest in building a process for product transfers. This is further evidence of our commitment to the intermediary market and our strong belief in a fair day’s pay for a fair day’s work, as we think that is what a true partnership is all about.”
Martin Reynolds, Chief Executive SimplyBiz Mortgages, commented: “The product transfer market will be growing over the next few years and lenders that embrace the intermediary within this sector will be welcomed. It is yet further good news from Virgin Money that they will be paying a procuration fee to recognise the work an adviser still has to do to ensure the best customer outcome.”
Jeremy Duncombe, Director, Legal & General Mortgage Club, added: “The announcement today of Virgin Money’s retention procuration fee is brilliant news for mortgage brokers. It is great to see a well known and respected lender recognise the important role that the intermediary channel plays, ensuring quality and cost effectiveness for all. As Virgin Money continues to lead the way on proc fees, we hope to see more lenders follow and reward brokers accordingly, for the vital service they provide to the market.”
