The Mortgage Club has said that proc fees need to be adaptable in order to suit various advisers’ individual business models.
While lenders normally pay proc fees upwards of one week post completion, the lead time on this is likely to be at least six weeks after exchange, perhaps even longer for new build properties.
However brokers choosing products from lenders operating through the Legal & General Mortgage Club can claim their proc fees in advance when the contracts are exchanged - thereby improving their cash flow.
Ben Thompson, mortgages director at Legal & General said: “Advisers don’t have the time to constantly chase individual lenders for proc fees so if speed is important to them, then advance payment of fees is the way to go.
"Currently, we are the only mortgage club to pay on exchange, which is a huge cash boost to advisers.”
