The change will apply to all cases submitted from Friday 22 September onwards.
Exclusive research commissioned by Mortgage Solutions revealed that extra borrowing to fund home improvements has soared past pre-recession levels, with more people borrowing more money against their property when remortgaging.
The lender said it wanted to recognise the “efforts by brokers when advising and completing on cases for this important segment of the market, and in deepening the relationships of our existing Barclays customers”.
Barclays director of mortgages Craig Calder (pictured) added: “The introduction of the proc fee on further advance cases ensures we are in line with the market and that we appreciate the work involved by brokers.”
Sesame Bankhall Group head of relationship management Jane Benjamin welcomed the move. “It’s very common for homeowners to seek further borrowing on their existing property, at which point the adviser needs to carry out significant level of work to ensure the client obtains the right deal for them,” she said.
“Barclays confirmation that they will introduce a proc fee is great news as it recognises and duly compensates for the work advisers do when servicing the further borrowing needs of their clients.”
