At the Expo today, Lee Gladwell, director of sales and proposition at Platform, (pictured) said it would not attempt to tie the level of procuration fee to quality of business, amid rumours a substantial high street bank is to implement this policy.
He said: “As far as new ideas go I think this is crap.
“Proc fees are a valid part of the industry and it is our job to underwrite these mortgages. I think to tie them to quality would be an administrative nightmare.”
Platform also explained its withdrawal from the residential interest only mortgage market as a commercial decision. Co-op’s decision to exit the market at the start of May was due to the changing regulatory landscape, he explained, making it more difficult to remain in the market.
“We were sorry we had to do that. Interest only is a valid product but for us it was a commercial decision. 90% of what we do is buy-to-let and we couldn’t justify the costs of it with the new controls.”
