View more on these topics

Brokers welcome B2L proc fee increase by Leeds and Skipton

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.”



Carney says rate rise closer but no return to pre-crisis levels

Bank of England governor Mark Carney says an increase in the base interest rate is “getting closer” but will not return to pre-crisis levels. In a speech to the Trades Union Congress in Liverpool last week, Carney said the UK economy is beginning to “normalise” and suggested interest rates could soon follow suit. He said: […]


8 out of 10 brokers fear more B2L rules

Eight in 10 brokers fear further regulation of buy-to-let after the Government’s shock move to regulate part of the sector in order to comply with the EU mortgage credit directive. Earlier this month, the Treasury published a consultation on the directive in which it revealed “accidental landlords” – borrowers who have not actively decided to […]


Precise Mortgages overhauls self-employed criteria

Precise Mortgages has overhauled its self-employed criteria and will now lend if the borrower has just one year’s certified accounts or SA302. Previously, the business must have been trading for a minimum of two years and have the latest trading accounts for loans up to 75 per cent LTV and trading for minimum of three […]


Regulator would like the power to tap telephones, says Wheatley

FCA chief executive Martin Wheatley has suggested the regulator should be given powers to use surveillance and wire tapping in its investigations. In a Treasury select committee hearing last week, Wheatley was asked by Labour MP John Mann if there were any powers the regulator wanted that Parliament has not yet given it. Wheatley said: “There […]


News and expert analysis straight to your inbox

Sign up