Newcastle Intermediaries has launched a product transfer process paying brokers a procuration fee of 0.2 per cent.
Following a trial with L&G Mortgage club, the lender is expanding its product transfer process to all registered intermediary partners.
The product transfer process enables brokers to switch existing borrowers of Newcastle to new deals.
All of the information required for a broker to review the customer’s case will now be included in the maturity letter.
A 0.2 per cent fee will be payable upon the successful product transfer in line with the broker's network or club agreement.
The trial with L&G started in July 2018 and was designed to test the product transfer process including the payment of a proc fee.
Steve Carruthers, head of mortgage distribution at Newcastle Intermediaries, said the lender had been gathering feedback from advisers on what they want from product transfers, resulting in this offering for all its broker partners.
He added that the products would be available on sourcing systems.
David Hollingworth, associate director of communications at London & Country, said an increasing number of lenders were introducing product transfers and he expects the trend to continue.
He said: "This is the type of proposition lenders needs to be offering. Halifax has had a product transfer process for quite a while, and now we’re seeing this product grow in momentum.
"By recognising the value brokers can bring in retaining customers, it can only be a win-win all round."
Dippy Singh is a freelance reporter for FTAdviser
