Mortgages PLC slashes proc fees

Mortgages PLC says “challenging times” have forced it to slash its procuration fees from July for both appointed representatives and directly authorised brokers.

The move follows a full review of the lender’s fee structure and applies across its distribution of packagers, networks, clubs and directly authorised intermediaries.

MPLC says the reduction in rates for ARs is varied but admits that DA firms submitting heavy adverse business will see their proc fee reduced from 1.25% to 1%.

However, those doing near prime buisness will not experience a fee cut and proc fees will remain at 0.5%.

Pete Thomson, sales director at Mortgages PLC, says: “We have always paid excellent procuration fees and our new fee structure remains extremely competitive.

“The changes being announced today therefore need to be viewed within the context of the level of fees being paid by other lenders.

“We are very mindful of the impact this move will have on our introducers and this has not been a decision we have made lightly.

“This is a challenging time for lenders.

“The cost of fixed rate funding is continuing to rise and product pricing has become intensely competitive, meaning lender margins are under real pressure.

“The decision to review proc fees is one which I have no doubt other lenders will be forced to make in the near future.”