Darlington Building Society Boosts Broker Fees to 0.3% Amid New Consumer Duty

Darlington Building Society has taken a significant step in supporting brokers by increasing the procurement fee for product transfers and retention products from 0.2 percent to 0.3 percent. This move is in response to the additional workload brokers face with the introduction of the new Consumer Duty regulations. Chris Blewitt, the head of intermediary distribution at Darlington Building Society, highlights the importance of this decision in acknowledging the hard work brokers put into securing the right mortgages for their clients.

Recognition of Broker Efforts

In an industry where time is of the essence, the increased procurement fee serves as a tangible acknowledgment of the efforts that brokers invest in navigating through the competitive mortgage market, especially with the added pressures of complying with the Consumer Duty. Chris Blewitt from Darlington Building Society emphasizes the mutual’s commitment to valuing the critical role brokers play in the home buying process and their dedication to finding the best possible mortgage solutions for clients.

Investment in Technology

To further support brokers, Darlington Building Society has also invested in technological advancements. The Society’s integration with the Iress MSO platform allows for streamlined processing of mortgages and product transfers. This technology enables the pre-population of decisions in principle or full mortgage applications directly from a broker’s Customer Relationship Management (CRM) system into the Society’s system, significantly reducing administrative burdens. Additionally, the provision of a dedicated digital business development manager (BDM) ensures that brokers receive on-screen support throughout the application process.

Implications for the Future

This initiative by Darlington Building Society not only recognizes the increased workload brokers face due to regulatory changes but also sets a precedent for how financial institutions can support intermediaries in a rapidly evolving market. By increasing procurement fees and investing in supportive technologies, the Society is fostering a more efficient and broker-friendly environment. This approach not only benefits brokers but also enhances the overall customer experience in securing mortgages, potentially influencing industry standards moving forward.