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Penrith BS boosts PT proc fee

  • 26/03/2024
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Penrith BS boosts PT proc fee
Penrith Building Society has increased its product transfer procuration fee to 0.3% gross or 0.28% net to recognise the “additional work” involved for the broker.

The proc fee change comes into force from 2 April.

The fee for product transfers was previously 0.25% gross and 0.23% net.

For new residential and buy-to-let (BTL) mortgage applications, the proc fee stands at 0.45% gross and 0.43% net.

Penrith Building Society said that product transfers “continue to dominate the market”, and it acknowledges the “additional work” involved for brokers to comply with them.

The lender added that it had extended waiving its application fee for new residential or BTL applications, barring expat, until 30 June.

It is the second time that the mutual has raised proc fees this year.

Tim Vigeon (pictured), head of products at Penrith Building Society, said: “Here at Penrith Building Society, we put the broker and customer at the forefront of our thinking. These changes recognise the work that is involved for brokers, as well as the need to help customers, and show our commitment in supporting them.”

The debate around product transfer proc fees has been ongoing as they have become a larger part of the market, due to affordability concerns with remortgaging.

The latest UK Finance figures show that product transfer transactions have gone up 17% year-on-year (YOY) in 2023 to 1,491,750.

Brokers typically place around half of product transfer cases and are responsible for carrying out a full fact-find and market research to recommend the right deal. Volatile market conditions have also increased administrative workloads, according to some brokers.

However, proc fees for product transfers are usually around half of a purchase proc fee.

Some lenders are realigning their product transfer proc fees, with Darlington Building Society and Family Building Society having recently increased their fees.

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