Brokers claim they are starting to feel the pinch in dealing with HBOS as the group attempts to reduce its market share from 26% to 23%.
They say the biggest lender in the group, Halifax, has been verbally confirming that it has changed its strategy on procuration fees and that unless intermediaries and distributors are doing certain volumes of business, payments could tumble.
Andy Wilgoss, managing director at Square Mile Mortgages, says while his firm will not be unaffected, it could have a considerable impact on smaller companies.
Matthew Bright, manager director of packager and network Optoma, says his company is frustrated at Halifax's refusal to allow it to increase its proc fees to a higher level.
However, Halifax says there has been no change to its proc fee structure.