During a panel debate at FSE London, Morris, sales director at Precise (pictured), added that a minimum level for proc fees should be imposed on lenders at a rate of around 0.6%.
Morris said: “All high street lenders should pull out of dealing with the customer direct and that money should be put into dealing with the intermediary market. I also believe that procuration fees should be a minimum of 0.6%, in fact they should actually be more than this.”
However, other panel members felt that procuration fees were at an adequate level, with Nationwide head of intermediary sales Ian Andrew predicting that the direction of proc fees was unlikely to change significantly in the near future.
Louisa Sedgwick, head of intermediary distribution at Leeds Building Society, added: “Our procuration fees are always under review. I think there may be more parity between the fee paid to ARs [appointed representatives] and DAs [directly authorised]. More lenders might start to pay the same across the board.”
