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Charge clients rather than demanding higher proc fee – IMLA

  • 19/09/2014
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Charge clients rather than demanding higher proc fee – IMLA
Mortgage brokers should be charging clients for their services rather than demanding higher procuration fees from lenders, IMLA's Charles Haresnape has said.

Speaking at the IMLA Great Mortgage Debate in London, Haresnape said brokers needed to make sure clients were paying for the professional advice on offer.

“The key thing for the broker industry is to promote more and more the benefits of broker advice. Always more can be done to advertise that service.

“It’s getting better because more and more brokers are charging a fee for what they do, and they should, because it’s a good service and it’s worth a lot.

“So we shouldn’t just keep banging the proc fee drum, we should be charging the right rate for the job, including proc fee admittedly, and not be scared about it. Every other profession does it, customers will pay for the right service.”

Peter Brodnicki, ‎CEO at Mortgage Advice Bureau, said intermediaries offered a good service and charging appropriate fees was ‘absolutely crucial’.

“Customers are already voting with their feet,” he said about research showing more consumers were turning to brokers since the implementation of the Mortgage Market Review (MMR).

Matthew Wyles, Castle Trust senior adviser, said the way lenders had applied the new rules was also forcing more customers towards brokers.

“Big lenders made a bit of a meal of MMR which resulted in these gigantic waiting times for a mortgage lender interview, so they’ve frankly played straight into the hands of brokers who are much more adroit and agile about the way they engage with the new regime.

“The big lenders only have themselves to blame if their direct-to-consumer share falls. I think it will fall and will continue to fall.”

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