Brokers have hailed Skipton and Leeds Building Society after both lenders announced an increase in procuration fees for buy-to-let cases, as revealed by Mortgage Strategy earlier this week.
Earlier this week, Skipton raised its proc fees for buy-to-let cases from 0.35 per cent to 0.5 per cent. The announcement was made alongside news that it had launched what is believed to be the sector’s only range of seven-year fixed rates.
Head of intermediary sales Paul Darwin adds: “We have done a review of the market place and our competitors and we have listened to brokers. Following the review we are delighted to announce the increase.”
Leeds Building Society has also increased its procuration fees for buy-to-let cases to 0.5 per cent, up 13 basis points from 0.37 per cent.
Leeds Building Society general manager for business development Martin Richardson says: “We have been working very closely with our intermediary partners on how to develop the service and products we offer through them to support our appetite for growth.
“We have the funding and the capacity within our plans to continue to increase our lending on Buy to Let mortgages and are pleased to be able to make this change to our fee structure.”
A number of buy-to-let lenders currently pay a procuration fee of between 0.4 per cent and 0.5 per cent for buy-to-let deals but brokers have hailed the move.
Fox Davidson director Wesley Davidson says: “The move reflects the fact that lenders value the business provided by brokers.
“Both lenders did previously pay a slightly lower fee than the market average for buy-to-let deals but this shows that they are keeping themselves up to date. The broker business stream is more valued than ever, as reflected in the increase in proc fees. It is a great move from both lenders.”
Mortgages for Business managing director David Whittaker says: “This is getting the market’s focus onto them having an innovative product, which no one has got, and increasing proc fees. That is Skipton trying to move up the food chain. Well done Skipton.”