Proc fee guarantee leads to 40% rise at c2

Packager c2-financial says it has seen a 40% rise in broker introduced business in the first four months of 2008 as a result of its proc fee guarantee.

It has set aside a £250,000 as a fund to guarantee broker proc fee payments and this money is under the control of independent solicitors.

David Wylie, chairman of c2, says: “Brokers are telling us that they are genuinely fearful that they may lose their proc fees, given the severity of the economic crisis and the seemingly relentless negative impact this is having on the entire marketplace.”

There have been countless examples over the last six months of brokers left high and dry and owed thousands of pounds in unpaid proc fees when packagers have closed down.

But Wylie says he applauded the professional manner with which Opus Mortgages closed its Glasgow offices last week.

He says: “While some other operations have simply closed their doors with little or no regard for the consequences, the directors of Opus have behaved in a typically professional manner.”