NatWest Intermediary Solutions is set to become the latest lender to increase its procuration fees.
From tomorrow directly authorised firms will get 3 basis points more for residential cases, with the lender paying 0.35 per cent, while appointed representatives will receive a 5 basis point increase to 0.4 per cent. The new fees will be payable on all completed residential applications from 1 October.
There is no change to proc fees payable on completed buy-to-let mortgages, with NatWest having increased these proc fees to 0.45 per cent gross last October.
NatWest Intermediary Solutions head of sales Graham Felstead said: “We regularly review all aspects of our proposition to ensure that we provide a competitive offering to brokers and their customers. We are simplifying our proc fee structure and increasing the fees that we pay to both ARs and DAs, bringing us more in line with the market.
”This change, combined with the investments we continue to make in our intermediary business to enhance our service and product range, demonstrates our clear commitment to the broker market. I am sure advisers will welcome this announcement.”
The announcement comes two weeks after Association of Mortgage Intermediaries chief executive Robert Sinclair predicted a proc fee war among lenders as they scramble to hit their year-end lending targets due to reduced volumes as a result of the MMR.
Proc fees have been a hot topic of late with several of the industry’s big names calling for lenders to increase their commission rates. A panel of experts at the Financial Services Expo in London last week, including Mortgages for Business managing director David Whittaker and SimplyBiz Mortgages chief executive Martin Reynolds, renewed calls for higher proc fees, citing the “bigger workload” for brokers since the introduction of the MMR.
Leeds and Skipton Building Societies both announced increased proc fees for buy-to-let transactions earlier this month, while National Counties BS has also increased its own proc fees across all mortgage transactions this month.
Legal & General Mortgage Club director Jeremy Duncombe adds: “NatWest has demonstrated its recent support for the intermediary market, and these procuration fee changes simply deepen that commitment. By recognising and rewarding intermediaries for the quality of their business and their importance to the overall mortgage market, NatWest sends a clear message to mortgage brokers that it is investing in the future of the market.”