Ray Boulger, technical manager at Charcol, says: “If the lender had a proper integrated online system, there would be an argument that it should pay higher proc fees. In the early stages of electronic trading higher proc fees would be justified as it will benefit all.”
Commentators say the benefits of electronic trading include speedier service for customers and less work for lenders. But they have warned that under FSA regulation lenders must be wary about the level of procuration fees paid to brokers, which has led some to think that despite electronic lending proc fees will be forced down.
Paul Darwin, development manager of intermediary sales at Skipton, says: “There might be a slight increase in fees as electronic trading provides some benefits to lenders.”