This change has been brought in following feedback from brokers and to reflect the work that goes into completing a product transfer, Newcastle for Intermediaries said.
This will come into effect today (3 December), and brokers with a product transfer already in progress with the mutual will be paid the increased proc fee.
Franco Di Pietro, head of intermediary mortgages at Newcastle Building Society, said: “As we continue to grow and work towards meeting our lending ambitions for 2025, it’s important that we recognise the continued support of our intermediary partners, strengthen those relationships, and acknowledge the level of service they provide upon maturity to ensure great outcomes for customers.
“With this in mind, we have reviewed the proc fee we pay for product transfers and will be increasing this to 0.3% for all product transfers from 3 December.”
Cat Armstrong, mortgage club director at Dynamo for Intermediaries, said: “Against the backdrop of a highly competitive market, it’s great to see Newcastle for Intermediaries’ commitment to working closely with the broker community, listening to feedback and recognising the value that they bring by increasing their procurement fees.”
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Clare Beardmore, director of distribution and mortgage club at Legal and General Mortgage Services, added: “In 2024, remortgaging and product transfers were a key focus for the market, with over a million mortgages reaching maturity. The advice community has risen to the challenge, working hand-in-glove with lenders to deliver positive and tailored outcomes for their customers.
“Over the past year, homeowners looked to advisers for their counsel and ability to monitor dynamic interest rates. I’m pleased to see that Newcastle for Intermediaries is continuing to forge strong bonds with the hard-working advice professionals who are driving change in our sector and delivering for homebuyers.”
The mutual’s half-year financial results showed that gross mortgage lending came to £584m and it supported more than 2,000 first-time buyers.
