Brokers have accused lenders using regulation as an excuse not to raise proc fees.
Speaking at the Mortgage Summit in Jerez on June 21, Kevin Patterson, sales director at Park Row, says it’s ironic that although lenders blame regulation for tighting margins, the biggest cost had in reality been bourn by brokers.
Charles Haresnape, managing director of mortgages at Bank of Scotland, says margins have been tightened by increased competition.
However, the majority of delegates attending the conference say they believe lenders use regulation as a smokescreen in hide behind when it comes to proc fees.
Chris Cummings, director general of the Association of Mortgage Intermediaries, argues that Council of Mortgages Lenders figures show margins increased in the six months prior to M Day and in the preceding three months.