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April Mortgages revises proc fee structure

Anna Sagar
Written By:
Posted:
September 5, 2024
Updated:
September 5, 2024

Long-term fixed rate lender April Mortgages has brought out a new and improved procuration fee structure.

April Mortgages‘ proc fee structure, which will come into force on 6 September, will include an initial procurement fee of 45 basis points at completion, along with an additional 30 basis points on every fifth anniversary of the mortgage for the remaining mortgage term.

Consequently, the brokers will receive an initial proc plus one additional 30 basis points for a 10-year fixed rate or two additional 30 basis point payments for a 15-year fixed rate.

The firm will bring out a “simplified proc fee rate” of 45 basis points for both product transfers and further advances.

The revised proc fee structure is in response to broker feedback and shows the lender’s “commitment to working closely with the broker community in developing products and processes that best meet their needs, and those of their clients”.

James Pagan (pictured), director of product and portfolio management at April Mortgages, said: “We are passionate about making the mortgage market more simple, for brokers as well as borrowers.

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“Listening to brokers has already resulted in a host of significant improvements to our offering, including our new, simplified proc fee structure. We want brokers to feel the same peace of mind and security from a longer-term fixed rate as their clients.

“April Mortgages looks forward to continuing to work closely with brokers as we modernise the structure of fixed rate lending and the peace-of-mind benefits this will bring.”

April Mortgages soft launched in April and is backed by a Dutch pension fund. It offers mortgages with terms from five to 15 years.

The firm has gone on to widen its capital-raising criteria for first-time buyers so it can support applications from borrowers looking to raise additional capital for gifting purposes when remortgaging.

It will also accept up to six times earnings, which boosts affordability for borrowers.

April Mortgages has also hired Rachael Hunnisett as its mortgage distribution director.