Fee increased amid growing adviser workload and regulatory demands
Buy-to-let specialist lender Fleet Mortgages has announced an increase in procuration fees for new business, raising the rate from 0.50% to 0.55%.
Fleet said the decision, made following a review conducted at its key account conference in Hampshire, was a recognition of the work carried out by advisers, and the increased burden placed upon them particularly in terms of ensuring they meet Consumer Duty rules to deliver positive client outcomes.
“We’re acutely aware that the workload for advisers continues to grow, particularly in a highly competitive product environment, and with regulation like Consumer Duty demanding more work in order to keep on top of available products so as to deliver a positive customer outcome,” said Steve Cox (pictured), chief commercial officer at Fleet Mortgages.
He added that the increase ensures Fleet’s procuration fees remain aligned with the work brokers undertake while keeping the lender competitive within its peer group.
“After a review of our procuration fee levels, we’re very pleased to announce today’s increase taking our procuration fee for new business up to 0.55% and signalling to all our intermediary partners that we value the work they are doing, the advice they are providing, and their choice to recommend Fleet to their landlord borrower clients,” Cox said.
Phil Rickards, chairman at broker London & Country Mortgages, welcomed the change.
“It’s great to see this positive move from Fleet, recognising the increasing demand placed on advisers,” he said. “With nearly 90% of all mortgage business now transacted via an intermediary, this also goes a long way to demonstrate Fleet’s ongoing commitment to the specialist lending sector in particular.”
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