Santander is updating its quality-based fee structure, including extending the assessment to loan terms of five years or more, resulting in lower adviser fees.
Santander was the first lender to introduce quality-based fees in summer 2012 for appointed representatives, but excluded mortgages with longer loan terms with all advisers and paid a flat rate of 0.5%.
From 2 January, on loans of five years or more, directly authorised advisers will be paid 0.1% less, with a flat 0.4% fee.
Appointed representatives will continue to be paid fees of 0.35% and 0.39% plus five basis points, which means advisers offering the best quality business will be paid six basis points less.
Buy-to-let products have been unaffected and still offer adviser fees of 0.5%.
Santander for Intermediaries managing director Brad Fordham (pictured) said: "These changes provide an opportunity for us to introduce further consistency across a broader range of our product set. We are focussed on writing mortgage business that is good quality and to offering borrowers the right mortgage for their needs."
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