View more on these topics

MBE Manchester: Barclays and Nationwide will not tie proc fees to quality of business

Barclays and Nationwide have revealed they will not follow a high street rival by tying the level of proc fee they pay individual brokerages to the quality of business submitted.

It is understood one of the major high-street banks is looking to determine the level of proc fee by the quality of business it receives.

It is understood the unnamed lender has developed a metric to assess different elements of brokers’ business, such as the quality of the cases they submit, how they interact with clients and their overall conduct.

Responding to a question from Money Marketing at a panel session at the Mortgage Business Expo in Manchester today, all five members of the panel – representatives from Barclays, Nationwide, Platform, GE Money and Virgin Money – said they do not plan to go down this route.

Sarah Green, head of national accounts at Barclays, says: “we will not be making changes to proc fees.”

And James Chidgey, senior manager of corporate accounts at Nationwide, says: “We have got no plans at all to do that.”

Lee Gladwell, director of sales and proposition at Platform, says: “As far as new ideas go I think this is a crap one. Proc fees are a valid part of the industry. It is our job to underwrite these mortgages and I think to tie them to quality would be an administrative nightmare.”

Richard Tugwell, intermediary business manager Virgin Money, says: “Using quality to determine proc fees is a blunt tool, it is more about educating people about why the case is not of sufficient quality.”

Recommended

NACFB members to get higher proc fees from Precise

Precise Mortgages is offering members of the National Association of Commercial Finance Brokers an enhanced proc fee of 1.3% rather than its standard 1%. The lender has teamed up with the trade body to promote higher standards in the residential bridging sector. Precise has campaigned for more transparency in bridging lenders’ interest and fee charging […]

Newsletter

News and expert analysis straight to your inbox

Sign up
Comments
  • Post a comment
  • adam sentance 23rd May 2012 at 4:30 pm

    Brilliant

    “As far as new ideas go I think this is a crap one”

    Someone speaking the truth for once.

    I have heard that the lender is question is indeed abbey for Intermediaires.

    Looking at how they are processing at the moment and the fact they will find any reason they can to decline a case, rarther than the woolwich or nationwide who will do anything to approve a case, i think they may change their mind.

    They are pracitically useless now any way.