View more on these topics

New calls for lenders to hike proc fees

Industry experts have renewed calls for lenders to pay higher procuration fees due to the additional work involved in processing cases post-MMR.

Taking part in a panel session at the Financial Services Expo in London today, experts suggested lenders should recognise the work brokers do by paying more commission.

Mortgages for Business managing director David Whittaker says: “In the post-MMR environment brokers are taking on a bigger workload and lenders are now more dependent on the work of brokers so they need to invest more in that channel. Lenders must recognise the broker role and increase their proc fees.”

SimplyBiz Mortgages chief executive Martin Reynolds says: “we saw proc fees move down last year but I would certainly agree that in the mainstream residential space, lenders need to look to raise proc fees and not just get to where they were but perhaps go higher.”

Speaking at the Association of Short Term Lenders’ annual conference last month, Association of Mortgage Intermediaries chief executive Robert Sinclair said he expected there to be a proc fee war before the end of the year as lenders struggle to hit their year-end targets.



Full regulation of buy-to-let on the horizon, say experts

The market should prepare for full regulation of the buy-to-let market, according to industry experts. Speaking at the Financial Services Expo last week about the Government’s shock move to regulate “accidental landlords” to comply with the EU mortgage credit directive, commentators suggested full regulation is on the horizon. Precise Mortgages managing director Alan Cleary says: […]


BBA says exclude HNW clients from new LTI cap

The British Bankers’ Association has urged the Bank of England to exclude high-net-worth clients from its new LTI cap. From October, lenders must limit the volume of loans they originate above 4.5 times income to 15 per cent of new lending. While the BBA says it “broadly supports” the limit on high-LTI lending, it says […]


Number of second charge products hits post-crisis high

A total of 220 secured loan products were available through 17 lenders in August, a post-credit crunch high according to Loans Warehouse. The broker’s latest secured loan index shows gross secured lending hit £48.8m in August, a rise of 22 per cent from £40m one year earlier. This represents 33 consecutive months of growth.  Despite […]

Champion the small-scale developer

Traditional development finance must price in project and liquidity risk, but if your project is completed and you have begun selling units you could be eligible for cheaper funding, writes Matthew Tooth of Lendinvest. A product which prices purely for liquidity risk is one way to help developers lower their costs. This type of product allows […]


News and expert analysis straight to your inbox

Sign up