The lender said that the proc fee change was part of a “wider review of its product switch retention process”, which has included the introduction of an online intermediary product switch tool.
Kathy Bowes (pictured), The Cambridge’s intermediary manager, said: “The advice intermediaries give to their clients is just as important when the existing product matures as it was when they first arranged the mortgage.
“We understand the importance of following a thorough advice process to ensure customers get the best outcomes.
“We’re increasing the proc fee to show how much we value our intermediaries’ ongoing support and the hard work they put into reviewing clients and recommending suitable solutions.”
Clare Beardmore, director of distribution and mortgage club at Legal and General Mortgage Services, said: “We welcome this step from The Cambridge, as it rightly acknowledges the outstanding dedication and expertise of advisers, especially in what continues to be a challenging economic environment.
“Advisers play a crucial role in guiding borrowers during what is likely to be their most significant financial commitment, and it is just as important to get guidance in switching products as when you first sign the dotted line, so it is positive to see this acknowledged today.”
Several lenders have increased or introduced proc fees for product transfers or product switchers as they became a more significant part of brokers’ workloads due to affordability issues on behalf of the customer.
Mansfield Building Society introduced a 0.2% proc fee for product transfers, Penrith Building Society increased its proc fee to 0.3% and Darlington Building Society upped its product transfer proc fee to 0.3%.
Bank of Ireland, Hodge, Family Building Society and Nottingham Building Society have also made similar changes in recent months.
Brokers have called for better alignment with new business proc fees due to heightened business and workloads from this area, but some lender executives had said it may not be feasible due to low lender margins.
