Brokers fear lenders will copy HBOS proc fee cuts

There\'s growing concern among brokers that other lenders will follow HBOS\' decision to reduce proc fees.

The lending giant cut fees by 0.03% on its Halifax range and 0.05% on its BM Solutions range last week.

Nigel Stockton, managing director of HBOS Intermediary Mortgages, refused to be drawn on specific changes but said it was no secret that the lender had been discussing proc fee changes for some brands.

One source says: “It will be interesting to see how HBOS’ rivals react. If it has reduced proc fees you can bet other lenders will do the same.”

David Nicholson, director of D&D Consulting, says: “To suggest lenders are going to cut proc fees just as their service hits the floor is disgraceful.”

But Danny Lovey, proprietor of The Mortgage Practitioner, says that while other lenders may follow suit, at about 0.3% Halifax’s proc fees are simply returning to the levels seen two years ago.

He says: “The cuts won’t stop me using Halifax but lenders have to be careful they don’t kill the goose that lays the golden egg.”