View more on these topics

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.”

Recommended

Co-operative Group admits Lloyds branch buyout is not a certainty

The Co-operative Group’s acquisition of Lloyds Banking Group’s 632 branches was thrown into doubt last week, after it revealed the deal may not go ahead. In its annual results the group says that although acquiring the branches would strengthen its UK banking arm, its bid is non-binding and will only proceed if it can reach […]

Newsletter

News and expert analysis straight to your inbox

Sign up
Comments
  • Post a comment
  • GHU 5th April 2012 at 4:35 pm

    Colin – so the work invoLved in a £1m loan is twice what it is for a £500k loan and four times as much if it is a £2m loan?

  • colin 4th April 2012 at 12:48 pm

    the cuts are not so much a problem on the smaller stuff, but what seems to have gone unnoticed is the new cap of £2500 by LBG.

    Any large loan broker is going to be seriously out of pocket….the gross proc fee on a £1m mortgage previously was £3900…….£2m £7800 etc etc……..

  • Des Platt 3rd April 2012 at 10:27 am

    Be fair fellows. The directors need their bonuses far more than we need our pay.

    This whole country is just geared to making the rich richer

  • Harry Moore 2nd April 2012 at 6:57 pm

    I have no problem with lenders cutting proc fees if the savings are going to be directly passed on to consumers.

    Advisors already have great analytic scope and unless lenders are going to offer each others products across a whole of market advice model they wont be able to compete with that.

    The proc fee has and always will be the last box ticked when researching mortgages for my clients.

  • Clive Watkins 2nd April 2012 at 6:33 pm

    Having been involved in the mortgage industry for many years, these actions were predictable but unfortunate. Intermediary introduced mortgage business is still important and will be more so in the future. Consider TMB, BoS, BM Sols etc. It is sad that these lenders cannot look beyond short term P&L goals.

  • AJK 2nd April 2012 at 5:57 pm

    “Aligned with business strategy and in line with the market” Is this is an April 01st wind up – What is their strategy? To take brokers out of the chain?

  • Bobby 2nd April 2012 at 5:55 pm

    More good news !

    This job just make’s you feel glad to be alive on a daily basis doesn’t it ?!

  • Downbeat Pete 2nd April 2012 at 5:24 pm

    Wait for it…….

  • Dazed & Confused 2nd April 2012 at 5:20 pm

    Thanks guys!

    It makes you feel all warm and wanted doesn’t it?