Each week, we also round-up the best comments, emails and letters to the site and pick one reader contribution as our Star Letter. This week’s award goes to:
Procuration fees – getting the balance right
As a relatively new broker to the industry (2009) I’m not as jaded by ‘what went before’ and one thing that strikes me is that lenders should also consider flat fees.
I charge flat fees to clients as it takes me the same effort for a £50k mortgage as a £500k one and I don’t see why I should penalise my clients on a percentage fee basis. They of course have the right to opt for a % fee though never do!
This doesn’t include commercial as that’s rewarded based on the loan size with good reason. Where my fee does move is where a case is more complicated of course as I’m factoring in the extra work. Lenders could adopt the same model.
Also as a broker who is meticulous about packaging I’m massively in favour of fees being based upon case quality. Nothing is more frustrating than knowing your case is behind a broker who puts their own date of birth on the app as they can’t be bothered to get the real one (yes this happens!)
Lisa
