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Skipton Intermediaries and Virgin Money increase proc. fees

by: Paul Robertson
  • 05/01/2015
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Skipton Intermediaries and Virgin Money have announced an increase in mortgage procuration fees.

Skipton Intermediaries said that for all new residential mortgage applications received from 5 January, proc fees will rise to 0.40% payable on completion.

The new gross rate applies to both Appointed Representatives (AR) and Directly Authorised (DA) brokers – existing pipeline business is unaffected by this change. The announcement follows on from Skipton increasing its buy-to-let proc. fees by 15 basis points from 0.35% to 0.50% last year.

Paul Darwin, head of intermediary sales at Skipton, said: “We are doing this as part of Skipton’s commitment to ‘real life lending’, starting the new year as we mean to go on by listening to, and acting on, feedback from our brokers.

Although Virgin Money would not disclose its financial arrangements with brokers, Mortgage Solutions understands it has also increased its residential and buy-to-let procuration fees to 0.5%. The change for both AR and DA brokers is believed to be an increase of 0.13%.

A statement released by the lender acknowledged increased costs in running a brokerage due to new regulation.

It said: “At Virgin Money we recognise that changes to the regulatory landscape have brought increased responsibilities for our partners to deliver appropriate advice and adhere to the specific packaging requests of lenders.

“In delivering the right outcomes for customers, this has increased overheads in running an advice-based business in the intermediary marketplace. Whilst we do not disclose our commercial arrangements for our individual partners, we believe it is right to reward our partners appropriately and the changes we have introduced reflect this.”

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