Nationwide and Lloyds cut proc fees

Nationwide Building Society and certain Lloyds Banking Group brands have made cuts to their procuration fees.

Mortgage Strategy understands Nationwide has cut its proc fees for directly authorised intermediaries by two basis points, from 0.35% to 0.33%, but appointed representatives are not affected.

Nationwide would not confirm the extent of the cut as it considers the information “commercially sensitive” but said the fees it pays intermediaries are still competitive.

A spokeswoman says: “We are confident that our procuration fees are competitive. We still pay more than some other major lenders.”

Lloyds Banking Group has also made changes to the proc fees it pays through certain brands.

It is understood BM Solutions will pay brokers – both directly authorised and appointed representatives – around two basis points less after the cuts, although this will vary between distributors.

Its Lloyds TSB Scotland and Scottish Widows brands have also witnessed changes to their commission structure but Lloyds would not confirm any details, except that some distributors would have experienced increases and some decreases. It is understood Halifax is largely unaffected by the changes.

A spokeswoman for Lloyds group, says: “We regularly review proc fees to ensure that they remain aligned with our business strategy and in line with the market. We have recently communicated some changes across our brands, which were effective from April 1, as a result some fees have reduced but others have increased.”