View more on these topics

High-street giants rule out linking proc fees to case quality

Royal Bank of Scotland, Virgin Money, Nationwide Building Society and Barclays have all ruled out linking mortgage procuration fees to case quality following Lloyds Banking Group’s admission that it is considering this approach.

Last week it was revealed that Lloyds is considering linking proc fees to business quality although has “no immediate plans” to switch to this structure.

Abbey for Intermediaries switched to this approach in July. It now pays its key accounts between 0.35 per cent and 0.4 per cent depending on the quality of business it receives from brokers, which is judged on the packaging of cases, the conversion rate of applications to offers and the overall quality of submissions. Directly authorised brokers get a flat payment of 33 basis points.

Nationwide, Barclays and Virgin Money say they review their proc fees on a regular basis but have no plans to change their structure.

Nationwide group intermediary sales managing director Ian Andrew says: “We keep proc fees constantly under review but we have no immediate plans to make any changes.”

A Barclays spokeswoman says: “We constantly review procuration fee payments to ensure they are appropriate, relevant and competitive but we have no current plans to change them.”

An RBS spokesman says: “We have no immediate plans to change the way we pay proc fees.”

Chadney Bulgin mortgages partner Jonathan Clark says: “After Abbey, it is inevitable others will look at this. If Lloyds is serious about this, we need to know exactly how it would measure quality.”

Recommended

1

Remortgaging hits 12 year low

Remortgaging accounted for the lowest proportion of gross mortgage lending since 1999, in August, according to the latest figures from LMS. Gross remortgage lending now represents just 25 per cent of total gross mortgage lending. Lending remained largely unchanged on July, falling 1 per cent, or by £32m, to reach £3.17bn. The LMS Remortgage Report […]

AVS not all it’s cracked up to be

Earlier this month the Council of Mortgage Lenders held its mortgage arrears and repossessions conference. Along with interest-only, one of the key topics for debate was assisted voluntary sales. AVSs are not a new idea and essentially allow some borrowers to get support from their lender to sell their property and avoid possession. But as […]

4

One in five iPhone users always overdrawn

iPhone owners are more likely to have a lesser paying job than other smartphone users with 20 per cent admitting their bank account is always overdrawn.

15

Three brokers stand trial over alleged £4m mortgage fraud

Twelve people, including three mortgage brokers, are currently standing trial for alleged mortgage fraud totalling £4m. Witnesses are currently giving evidence at the trial, according to the Bournemouth-based Daily Echo. The defendants include a conveyancing clerk, three mortgage brokers, seven property buyers and the wife of a broker. They are accused of inflating property prices […]

Newsletter

News and expert analysis straight to your inbox

Sign up