View more on these topics

Mortgage Next to pay proc fees within 24 hours

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.


Market watch 3 March 2008

Swaps continued to edge upwards last week, but they seem to play virtually no role in dictating what happens to mortgage rates.

Rate hikes add to first-timers’ woes

Nationwide has ramped up the rates on its 75% and 90% LTV deals by 0.2%.This is a further blow for first-time buyers following the withdrawal of all 125% LTV products from the market.Nationwide’s two-year fixed rate 90% LTV deal has been increased from 6.25% to 6.45% with no reservation fee.Its two-year 95% LTV fixed rate […]

Brokers failing to follow up client cases

A shocking 40% of HBOS’ remortgage business is submitted by brokers who did not place the original deals.Nigel Stockton, managing director of HBOS Intermediaries, says this is a worrying statistic given the prevailing market conditions.He says: “To succeed in the current climate brokers need to revisit existing clients.”The revelation follows a Mortgage Strategy straw poll […]

FSA to spearhead debt advice pilot

The Financial Services Authority will launch a free debt advice pilot scheme based on the recommendations of the Thoresen Review of Generic Financial Advice.The review calls on the government to provide a free public financial advice strategy to Britons. Otto Thoresen, chief executive of Aegon UK, was appointed by the Treasury to undertake the review […]


Guide: day-to-day tasks ​— can your system manage?

This guide from Johnson Fleming will take you through the required communication and also give ideas for additional actions that will ensure your auto-enrolment project is a success. As well as highlighting what is required from a system to ensure it is up to the tasks, an overview of the following is also provided: data validation; data categorisation; employee communication; opt-in process; opt-out process; produce contribution schedule; contribution reconciliation process; upload of member data to pension provider; upload contribution to pension provider; manage salary sacrifice process; enrolment process; re-enrolment process; and management of increased employee queries.


News and expert analysis straight to your inbox

Sign up