Broker Mortgage has secured private funding to introduce the fast payment scheme. The only proviso is that completion is within 21 days and that brokers use a solicitor from the packager’s approved panel.
Lee Connolly, manager at C Group, says: “We’ve been looking at doing this for the past six months and trying to secure funding. We trialled it with our own brokers and it’s a simple system.
“There’s a form that the solicitor stamps on exchange of contracts with the completion date and then faxes to us. Then we contact the funder who arranges payment by BACs to arrive in the broker’s account within 48 hours.”
Connolly adds that Broker Mortgage has decided not to claw back proc fees should deals not complete and that it has not cut proc fees to compensate for this risk.
But Jonathan Burridge, managing director at Quantum Mortgage Brokers, says: “If your cash flow depends on getting paid this quickly you probably need to look at how you are running your business. “There’s nothing wrong with this idea but it wouldn’t make me more likely to opt for a packager. Service and products are more important.”
And David Wylie, group chairman of c2-financial, says: “This seems an innovative idea but it would need to be backed up by competitive proc fees and efficient service. I’d be interested to see the small print.”
Chris May, director at The Mortgage Times Group, says: “We have been paying proc fees on exchange of contracts for more than three years on many cases. But we welcome this move and any further moves that see hard-working brokers receive fees as soon as possible.”