Mortgage Next has reassured brokers that it will pay proc fees within 24 hours of lenders confirming completion has taken place.
This reassurance is being made in response to growing concern that if a network, club or packager ceases trading, then outstanding proc fee payments may be put at risk. As part of its express proc fee service, which is available free of charge via its website, Mortgage Next is guaranteeing to make payment within 24 hours of completion being confirmed by a lender.
Gemma Harle, managing director at Mortgage Next, says: “It’s understandable that in these uncertain times brokers do not want to run the risk of valuable proc fees being lost if a distributor is taken into liquidation. I can assure our members that we do not sit on proc fees. We make daily BACS payments and will transfer proc fees just as soon as a lender has confirmed that completion has taken place. We also pay life commissions on a daily basis. In reality, therefore, brokers very rarely have outstanding proc fee payments residing with Mortgage Next.
“Mortgage Next can also provide its members with a couple of additional assurances. Firstly, we are owned by Freedom Finance, which, in turn, has JZ International as a majority shareholder. JZI is the international arm of the US based Jordan Company, which owns businesses worldwide with a collective annual turnover of approximately $4bn. We therefore have considerable financial strength and backing. Secondly, AR’s of the Mortgage Next Network should remember that we have to meet a regulatory capital requirement. These are all important factors which brokers should take into consideration when deciding which network, club or packager to deal with.”
Last week, All Types of Mortgages guaranteed that it would pay proc fees within 48 hours of confirming a completed deal.