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Proc fee changes at Barclays, TMW and Lloyds

Procuration fees are changing at The Mortgage Works, Barclays and Lloyds Banking Group on January 1 2011.

Barclays is ending its enhanced proc fees on offset mortgages and stopping fees on further advances.

The lender says that having one transparant and uniform proc fee will be easier and clearer for brokers to understand.

A spokeswoman for Barclays says: “Barclays is making some small changes to the proc fees to ensure our fees are in line with the market.

“We remain committed to the broker market and continue to have a competitive product offering for intermediaries.”

TMW is cutting its proc fees to certain distributors which have had enhanced proc fees in the past.

But a spokesman says its buy-to-let standard proc fee will remain the same at 0.45%.

He says: “TMW has historical arrangements with certain distributors and the enhanced procuration fee for these firms will be coming down in the new year to align it to the rest of the market.”

But the lender says it can not go into specific customer details or the new rate as this is commercially sensitive.

Halifax and BM Solutions are also making changes to its proc fees for national accounts for the first time in three years with some rising and some falling.

A spokeswoman for Lloyds says the market has changed considerably and it now has a more appropriate structure for today’s market.

All application submitted before January 1 will not be affected by the changes.

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Comments
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  • andrew forsey 24th January 2011 at 7:06 pm

    The days of proc fees have long gone. Finding a lender to lend in the first place is more relevant.

  • colin 3rd December 2010 at 3:53 pm

    James….i m fully aware of what the message says, but its highly amusing that a message stating answering will be delayed due to adverse weather, when every call is answered in Bombay. Bombay then proceed to tell you that they cannot put you thru to Leeds as no one is there due to the adverse weather………….although i was phoning someone back who called me not 5 minutes since!!!!!!!!!!…….so clearly was there……..oh and james patience is something you need in abundence dealing with Bombay

  • James 3rd December 2010 at 2:33 pm

    Re Colin – If you listen to the message properly you`ll hear that it actually states that due to conditions in the north of england the call centre there is closed. As part of the processing is in Leeds this fits.. If you had patience (Which you dont seem to) then you will find that you go through to the processing team as normal. I have spoken to them twice myself today

  • Paul 3rd December 2010 at 2:32 pm

    Re Colin – If you listen to the message properly you`ll hear that it actually states that due to conditions in the north of england the call centre there is closed. As part of the processing is in Leeds this fits.. If you had patience (Which you dont seem to) then you will find that you go through to the processing team as normal. I have spoken to them twice myself today

  • John Pinkman 3rd December 2010 at 2:13 pm

    Colin, absolutely brilliant, it’s almost a ‘ carry on up to Bombay in the snow ‘ scenario !!!

  • colin 3rd December 2010 at 10:23 am

    comical press release…….they must think brokers are totally stupid………well i think i ve found further proof……ring their broker line…..theres a pre recorded message apologising for any delay in answering the phone due to adverse weather conditions!!!!!!!!…………the bloody call centre is in Bombay

  • Anon 3rd December 2010 at 9:50 am

    Is there any industry morenegative than brokers really? “All the beginning of the end” and “last one out turn the lights off” merchants have clearly not been looking at the market. Overall mortgage completions are down, not just in the broker world…brokers still account for more than 60% of all completions, the truth is with low SVRs we just aren’t seeing remortgage activity.

    As for proc fees despite lender systems getting better, quicker and more effective proc fees have never really been reviewed. The fact that the FSA wants us to do more compliance work is not the fault of any lender so why should they pay for it?

    Selling an offset product takes no more time than any other type of mortgage, and the reality is the customer has to generally fill all of the savings details in! Yes they’re more likely to stay with their lender in 2 years time but aren’t we meant to be doing whats best for the customer not for our business model?

    The reality is if you offer a good service, if your client values your advice then charge them a reasonable fee-to me the proc fee is just an added benefit that will more than likely disappear over time.

  • kevin duffy 3rd December 2010 at 8:59 am

    ….perhaps instead of sending the two daves & billy windsor to FIFA ‘s shindig , we should have sent our bankers ? … they’re clearly more skilled in the dark arts !! in all fairness however , some of the reductions were long overdue esp in cases where arrangements were built on “executive familiarity” or 2006 lending volumes. There is still a good living for good brokers ie those brave and compliant enough to provide full mortgage protection and to charge a brokerage fee. better times are only 12 mths away….

  • Broker from E1 2nd December 2010 at 9:27 pm

    It’s very strange for three lenders to announce proc changes at the same time. Lloyds haven’t been the same since they merged together. I would have thought woolwich should’ve increased incentives to attract business as presently they’re systems are a pain to use and whats with the call centres being in india??. TMW have the largest arrangement fees charged by a lender..almost all their products have a percentage of 1.5% and above

  • mark wilkins 2nd December 2010 at 5:12 pm

    Complete tosh. I have never known two sides in an industry to clash as much as lenders and brokers. Maybe some of the directors of Barclays can explain this, in particular, Mr Diamond, before they start feeding at the trough at bonus time. Absolutely astonishing

  • Keith 2nd December 2010 at 5:07 pm

    re A Has Beens comment
    The industry survived without proc fees in the aerly 90’s because most mortgage sales came with the sale of an endowment, obviously not a situation that exists today. Barclays move simply pushes more brokers to charge fees or raise them if they already charge, a very disappointing move and as has been said already a press release written by Gerald Ratner!
    Ironically at a time when clients need an advisor more than ever. Feels like a pretty crappy industry to work in at times.

  • A Has Been 2nd December 2010 at 4:49 pm

    In the early 90s there were no proc fees..yet brokers and the housing market worked…proc fees a blip in the long long history of the housing market? Discuss!

  • roger travis 2nd December 2010 at 4:47 pm

    is this the beginning of the end to proc fees?

  • Wounded From London 2nd December 2010 at 4:37 pm

    The lender says having one transparant and uniform proc fee will be easier and clearer for brokers to understand. [sic]

    I hope this is not what the lender said as it implies that brokers are too thick to work out a proc fee.

    Nothing like having your income jeopardised along with a condescending comment to go with it, eh, Barclays.

  • James Lindon-Travers 2nd December 2010 at 4:29 pm

    An astonishing decision. Higher proc fees for offset is widely accepted as a reasonable strategy as it is unlikely that Offset clients ever remortgage away from their lender.

    To withdraw proc fees for Further Advances is a nonsense – the workload for an F/A with Woolwich is huge especially when having to deal with their comical call centre in Mumbai.We already charge our clients for this service – we will be increase our fees as a countermeasure. When will they ever learn???

  • Dan McGeehan 2nd December 2010 at 4:28 pm

    Barclays have undone a lot of the good work they have done with not dual pricing with their stupid press release. To suggest brokers could not understand the two different proc fees is laughable. If we struggled to understand proc fees how on earth do Barclays expect us to explain a KFI!. It would have been more honest for them to state that they where reducing proc fees to save money. However with offset it is generally more work to explain to customers and with lenders gaining extra business through current accounts/savings the mortgage is more profitable compared to a mainstream offering so should come with a higher proc fee.

  • Tim Froggatt 2nd December 2010 at 4:17 pm

    Not happy with lower risk business, bigger margins, increased fees, now they want a slice of the brokers income.
    Greedy Bankers.

  • QuoMan 2nd December 2010 at 4:06 pm

    Ooh, very stupid!

  • QuoMan 2nd December 2010 at 4:06 pm

    Ooh, very stupid!

  • Graham Gibson 2nd December 2010 at 3:57 pm

    Typical! Whilst we have to spend longer and longer on processing the mortgage applications on behalf of our clients due to more stringent underwriting requirements and inefficient processing teams, the lenders want to pay us less for doing it.

    Also how patronising of Woolwich to comment “having one transparant and uniform proc fee will be easier and clearer for brokers to understand.” How stupid do they think we are?

  • William Reid 2nd December 2010 at 3:51 pm

    So how do 3 separate brands make that decision on the same day? Price-fixing?