View more on these topics

Brokers backing appeal for ‘fair recompense’ on fees

Brokers and large distributors have united behind Countrywide financial services director Nigel Stockton’s call for lenders to increase procuration fees.

Last week Mortgage Strategy revealed Lloyds Banking Group has decided to follow in Santander’s footsteps by linking proc fees to the quality of business submitted from the start of next year.

Last week, as the news broke, Stockton called for “fair recompense” as a result in improving professionalism and increasing workloads for brokers.

Under the MMR, responsibility for ensuring affordability lies ultimately with the lender. But brokers say they are the ones having to meet tougher packaging requirements being introduced by lenders ahead of the MMR, and as such should be rewarded accordingly.

Perception Finance managing director David Sheppard says: “Lenders now require a lot more from brokers in terms of the affordability checks and necessary documentation. I think this is a healthy move for the market, but at the same time if the lenders are wanting us to do so much more in terms of pre-vetting the clients, it is only right we are compensated accordingly.”

SimplyBiz Mortgage Club chief executive Martin Reynolds says: “It would be an interesting debate with lenders in the run-up to and post-implementation of MMR to understand what additional work and checks they would want an adviser to do above what they currently are doing. If there is additional work, surely that therefore warrants a renegotiation of fee structures?”

However, PMS executive chairman John Malone is calling for more equality in the fees directly authorised and appointed representatives are paid.

He says: “The intermediary, regardless of whether they are directly authorised or an appointed representative, are largely doing the same job and should therefore be paid the same money.”

Recommended

Letters

Time to set the record straight on short-term lending How bored are you of hearing about bridging in relation to two things only? Apparently it is “full of shady practice” and people are forever asking “shouldn’t it be regulated?” My colleagues and I have been in the short-term lending sector for 25 years and I […]

The death of retirement – a boost for protection?

According to our recent report on the death of retirement, changes in workplace pension provision mean that coming generations of retirees could have a radically different experience of retirement from their parents. The average contribution rate into an old-style final salary pension was around 20% of total wages, the statutory minimum for a new automatic […]

Newsletter

News and expert analysis straight to your inbox

Sign up
Comments
  • Post a comment
  • Jonathan White 13th September 2013 at 10:39 am

    Genius John, more for the same old sticker club – I thought you had retired anyway?