As part of the enhancements, the lender is to increase the proc fee by 0.05 per cent on the ranges. However, it indicated that the proc fee enhancements would not apply to its non-conforming or 100 per cent ranges.
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Paul Howard, director of intermediary sales at The Mortgage Works, confirmed that the move had followed broker feedback. He said: “We have listened to feedback from intermediaries and recognise the need to monitor and review the payment of procuration fees. Mortgage intermediaries are our main distribution channel and we have chosen to enhance the fee in recognition of this. We believe the move will be well received.”
Alan Lakey, senior partner at Highclere Financial Services, said: “I think that the move is the lender’s way of trying to position itself. The 0.05 per cent is a very small rise in proc fee, but intermediaries should not be basing their decisions on the amount of commission to be paid. Only when two deals are identical should brokers be looking at the proc fee. ”
He added: “Buy-to-let and adverse cases deserve a higher rate as there is more work involved in the applications.”
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