Clydesdale Bank has become the latest lender to increase its procuration fees.
From today it is paying 0.4 per cent to appointed representatives and 0.38 per cent to directly authorised brokers.
Previously, the lender had a tiered proc fee structure, ranging from 0.3 per cent to 0.37 per cent, but it has now moved to a flat fee structure.
Clydesdale Bank head of intermediary distribution John Tooth says: “Brokers have provided us with a successful distribution channel that has helped us grow our mortgage lending. It is a valuable relationship, and their support is appreciated.
“To ensure we, in turn, support our broker partners appropriately, we regularly review our proposition. As a result, I am pleased to announce increased fees for both DAs and ARs.”
Proc fees have been the subject of much debate over the past couple of years, with brokers arguing they should be paid more post-MMR due to the extra work involved.
While Clydesdale has increased its fees, they still fall well short of the 0.7 per cent major distributors have been calling for, as revealed by Mortgage Strategy today.
The lender is the latest in a string of lenders to have boosted proc fees, with Accord Mortgages, Leeds Building Society, NatWest Intermediary Solutions, Skipton Building Society and Virgin Money all raising their fees in recent months.