HBOS to review proc fees

HBOS is reviewing its proc fee levels, with Halifax’s set to tumble by 0.03% and BM Solutions’ by 0.05%.

Mortgage Strategy Online understands that a large number of brokers will be impacted by the changes. Intelligent Finance is apparently the only one of the five brands to be unaffected by the changes.

Nigel Stockton, managing director of HBOS Intermediary Mortgages, refused to be drawn on what specific changes had been made, stating that all of HBOS’ proc fee discussions “are quite confidential”.

But he says: “I don’t think it’s a secret that we are discussing proc fee changes within Halifax, BM Solutions and Bank of Scotland.”

Brokers have long been concerned that with the cost of funding rocketing, an inevitable impact of the credit crunch would be a reduction in proc fees.

One source says: “Lenders are in a difficult position at the moment and it was inevitable that proc fees would fall.

“The interesting thing now will be to see how rival lenders react to the move. If HBOS has reduced its proc fees you can bet your bottom dollar that others will go the same way soon.”