According to brokers, the change will align proc fees with owner occupier and buy-to-let new business purchases and remortgages.
Product transfers have been growing in popularity as more fixed rates come up for maturity and they can offer improved pricing and bypass affordability checks. Another factor could be falling house prices and product transfers not needing a property valuation in most cases.
Brokers have called for proc fees for product transfers to be in-line with purchase cases, pointing to heavy administrative workloads, increased refinancing volumes and the comprehensive advice involved.
Family BS: ‘Proc fee increase recognises additional work’
Darren Deacon (pictured), head of intermediary sales at Family Building Society, said: “We appreciate the hard work that intermediaries do in this ever-changing interest rate environment. In the wake of Consumer Duty, the advice process that intermediaries follow for arranging a product transfer is very similar to arranging a new mortgage. They still need to complete a full review of the client’s needs to ensure that the product transfer is the right solution.
“With the work on product transfers becoming more complex, this procuration fee increase recognises this additional work and demonstrates our continued support to intermediaries, in what continues to be a difficult market for many.”
Mark Harris, group chief executive at Savills Private Finance, said: “Family Building Society should be applauded for making this change. The product transfer market is fractured and brokers are not being rewarded appropriately. I hope this is a signal to other mortgage lenders.”
