Mortgage Solutions understands one of the UK’s largest mortgage lenders Santander for Intermediaries is ready to introduce a minimum procuration fee of £400 for advisers on loans of £25,000 and above.
The change takes effect from Monday 13 February.
Brad Fordham, managing director of Santander for Intermediaries, said: “The work the intermediary market does is invaluable. We understand the amount of work that goes into new business cases, irrespective of the size of the customer’s mortgage and the introduction of a minimum procuration fee is recognition of this.”
The bank said it is ‘committed to the intermediary market’ and this latest change follows the announcement to begin paying brokers a procuration fee of 0.2% on retention business.
The roll-out of these payments across networks and mortgage clubs will start from 1 March and be fully in place by the 1st July 2017.
The bank also rolled out its lowest ever fixed rate mortgage product – a 60% loan to value (LTV), 18 month fixed 0.99% with a £1499 product fee, giving customers a very competitive short term borrowing option. In addition, Santander has added a £250 cashback to its lowest ever 60 per cent five-year fixed rate at 1.89 per cent with £999 product fee, available on purchase and remortgage.
The proc fee move will make a big difference to broker incomes in the north of England, said one network boss.
Barclays raised its buy-to-let mortgage proc fee a further 0.05% last week in a bid to ‘recognise the additional work involved in sourcing, advising and completing a buy to let mortgage.’
Victoria Hartley is contributing editor at Mortgage Solutions, Specialist Lending Solutions, Your Money and Your Mortgage at London-based publishing company AE3 Media.
She has an MA in Radio from Goldsmiths after gaining a 2:1 in a Comparative American Studies BA at Warwick University. She also holds a TEFL qualification and taught overseas in Mexico and Japan from 1994 to 1997.
Her role includes editorial oversight of the news, analysis and features, event content management and strategic and editorial consultancy for the AE3 Media group. She is an experienced video, broadcast and live-event host and regularly chairs web and podcast debates and interviews.
Multiple award nominations have resulted in two wins: Santander Media Awards, trade journalist of the year and Headlinemoney Awards, mortgage journalist of the year (B2B). Here is one of the award-winning pieces: https://www.mortgagesolutions.co.uk/news/2011/07/21/exclusive-tale-bailey-fraud-witness/
Previous roles include editorships of Mortgage Solutions, consumer title What Mortgage and trade title Credit Today as well as a stint freelancing for a variety of outlets including The Guardian and Which? Money.
