Letters of the Month: Mortgage clubs are helping to level the playing field

From Jonathan Cornell
With all the mutterings in the past couple of years about procuration fees having to go down it is great to see that mortgage clubs have recently been able to use their collective bargaining power to negotiate higher proc fees from lenders and thus increase the proc fees they are paying to brokers.

We have found out recently that clubs have increased the proc fees for the Halifax so brokers will now be able to receive 0.34% net. So far, at least one club has announced that brokers will receive 0.55% net for BM Solutions buy-to-let rates.

Brokers will benefit from these increased proc fees from the two largest lenders in their industry sectors. Regulation is expensive and time consuming and up until now we have not been rewarded for the additional work we have had to do.

We have also seen major lenders like Abbey, Nationwide and UCB joining new clubs recently, seeking to increase their distribution. Mortgage clubs level the playing field on rates by securing excellent exclusives which mean that smaller brokers can compete more easily with larger ones.

It is evident that mortgage clubs are playing an ever stronger role in the industry and brokers of every size are benefiting.

Long live the distributor.

Jonathan Cornell,

technical director,

Hamptons