BoS to pay proc fees on product transfer deals

Brokers received an early Christmas present from the Bank of Scotland last week when the lender said it would start paying proc fees on its online product transfer and further advance deals.

The lender started the pilot scheme on Saturday and brokers placing one of these products with existing BoS clients will receive a competitive proc fee just in time for Christmas.

BoS has offered some favourable deals over the past 24 months. And with a large tranche of two-year money coming up for remortgaging, brokers who had previously placed mainstream business with the lender will reap the rewards if it remains in clients’ best interests to stay put.

Peter Curran, head of distribution for BoS and Intelligent Finance, says: “This is something brokers have been asking for and I am pleased we are now in a position to deliver this pilot. “Brokers play a crucial role in advising clients and providing proc fees on product transfers and further advances createsa level playing field.”

Curran adds: “They will be re-munerated for providing advice and placing the business back with BoS if it is in the best interests of their customers.”

The pilot scheme runs until March 31 2009 and only applies to BoS’ product transfer and further advance mainstream and large loan product ranges.

It excludes Personal Choice deals as well as self-cert and buy-to-let ranges.

The decision to pay proc fees on product transfers brings BoS more in line with the rest of the HBOS group as Halifax and BM Solutions already do the same.

Proc fees will be payable seven days after product transfers and settlement will be made in line with existing agreed timescales.

Fahim Antionades, director at Quantum Mortgage Brokers, says: “Despite this move only applying to BoS’ mainstream range, it will be welcome news for brokers who have placed clients with the lender over the past two to three years, as long as the best course of action for clients is to stay where they are.

“BoS has been competitive in the large loan market and it is great to hear some good news for a change, especially in time for Christmas.”

Andrew Montlake, partner at Cobalt Capital, says: “This is a great move by BoS and one that will be welcomed by many brokers.

“It shows that even in the prevailing market conditions lenders can still be dynamic and forward-thinking.”