The procuration fee change applies to mortgage product transfers across all its products “in recognition of the brokers it works with, and their continued commitment to consistently securing the right customer outcome”.
Emma Graham (pictured), business development director for mortgages at Hodge, said: “The product transfer market continues to be a hugely important one and as an intermediated lender, we really value the work our brokers put into ensuring their existing customers find the best possible solution upon maturity.
“In the wake of the Consumer Duty, we continue to see an increase in the broker share of the product transfer market which has increased from around 20 per cent to 40 per cent.”
She continued: “We also appreciate that the full advice process is followed, and hope increasing our procuration fee goes some way to showing our brokers just how much we value their support and recognise their commitment to consistently ensuring the right outcomes for their customers.
“We’re doing all we can to help our intermediary partners navigate these tricky economic times and increasing our procuration fees is the next step in what, for us, is very much a continuous process of improvement when it comes to supporting our intermediary partners, and their customers in the moments that matter.”
Procuration fee debate
There has been increasing debate around alignment of purchase proc fees and product transfer procuration fees, with brokers citing higher administrative workloads, increased refinancing volumes and comprehensive advice involved.
Several lenders have improved their proc fee, with Family Building Society upping its product transfer procuration fees while the Nottingham has improved the procuration fee for its residential retention products.
Some lenders have said that aligning product transfer procuration fees with new business may not be doable due to low lender margins.
Product transfers will continue to be an important part of the market with an estimated 1.6 million fixed mortgages coming to the end of their term in 2024.
