NatWest has confirmed it is to launch a product transfer facility that will pay brokers a gross procuration fee of 0.2 per cent.
Due to be rolled out on 15 December, the facility will enable brokers to help existing NatWest mortgage customers switch to a new NatWest mortgage at the end of their current deal.
It will be available for both residential and buy-to-let business for customers who are within their roll-off period, those on a standard variable rate (SVR) and those with ‘track and switch’ functionality.
The balance available to switch must meet the new product minimum of £25,000.
Brokers will be paid a gross procuration fee of 0.2 per cent on completion of each deal.
Graham Felstead, head of intermediary mortgages at NatWest Intermediary Solutions, said: "I am delighted that we are able to launch our new product transfer facility.
"Retention has certainly been one of the hot topics over the last couple of years and one that we have had valuable dialogue on with our key intermediary partners.
"With our broad range of mortgages in both the residential and buy-to-let sectors, this really does offer brokers a great opportunity to offer their customers a more complete remortgage experience."
The service, which includes a free House Price Index valuation to ensure the most appropriate loan-to-value deal is offered to customers, will be available at the lender’s intermediary website under the 'product switch' option.
It will not be available to customers who want to exit an existing deal ahead of the roll-off period, customers wishing to take additional borrowing simultaneously, those wishing to instigate a contract variation or those whose mortgage is in arrears.
Mike Richards, director at London-based Mortgage Concepts Associates, welcomed the move as a positive one for clients, lenders and brokers.
He said: "It is all in the right direction on business retention. It is very useful. It helps brokers and all lenders will have to follow suit eventually.
"While you always do the best for the customer, sometimes it is an easier process for the customer to stay with their existing lender rather than try to move it."
simon.allin@ft.com
