National Counties increases proc fees for brokers

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National Counties Building Society is now paying a 0.35 per cent procuration fee on all new mortgage transactions, after revising its fee structure.

Previously, brokers received proc fee payments based on the length of the original product term, subject to a cap of 0.35 per cent. 

For example, a two-year product would pay out a 0.2 per cent fee while a three-year product would pay a 0.3 per cent fee.

Under the revised structure, National Counties and its recently launched subsidiary Family Building Society will play a flat proc fee of 0.35 per cent across all new products.

The lender will also pay a 0.15 per cent fee for owner-occupied and buy-to-let mortgages ported from other lenders.

National Counties and Family Building Society associate director for business development Keith Barber says: “The intermediary market continues to be extremely important for National Counties.

“We hope this move demonstrates our commitment to the broker market and, together with our evolving and innovative products, offers an excellent opportunity for brokers to serve those clients whose needs aren’t being met by traditional lenders.”

Perception Finance managing director David Sheppard says the move brings National Counties and the Family Building Society in line with other lenders.

He says: “Essentially, National Counties has set up its fee structure in the way the majority of lenders have done already. There are anomalies, such as Santander paying more for a five-year fix, but 0.35 per cent is the standard.

“I would imagine this move is to stop brokers from overlooking National Counties simply because they are not paying as much as other lenders. That technically shouldn’t happen but I’m sure it does and this is a way for the lender to stem that problem.”