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Virgin and Skipton increase proc fees

Virgin Money and Skipton Building Society have become the latest lenders to increase their procuration fees.

Virgin has increased its residential and buy-to-let proc fees by 13 basis points to 0.5 per cent for both appointed representatives and directly authorised brokers.

In a note to brokers, the lender says it has recognised that brokers’ workloads have increased post-MMR.

It says: “We recognise the impact the Mortgage Market Review has had on brokers’ daily workload and the service they provide their clients. And we believe in a fair day’s pay for a fair day’s work.”

Skipton has increased its residential proc fees by 6 basis points to 0.4 per cent. The change applies to both Das and ARs. In September, the lender raised its proc fees for buy-to-let cases from 0.35 per cent to 0.5 per cent.

Skipton head of intermediary sales Paul Darwin says: “We are increasing fees as part of our commitment to [our real life lending charter], starting the new year as we mean to go on by listening to, and acting on, feedback from our brokers.

“We are also acknowledging the increased work being carried out by brokers post-MMR.”  

Several other lenders increased their proc fees at the end of last year, including Monmouthshire Building Society, NatWest Intermediary Solutions, National Counties BS and Leeds BS – the latter two for buy-to-let cases.

Chadney Bulgin mortgage partner Jonathan Clark says: “About a year ago there were mutterings about proc fees being on the way out etc. However, as soon as MMR came along lenders obviously dropped the ball a bit and realised they need more business through brokers and we are starting to see that with several lenders increasing fees. This move from Virgin especially is a shot across the bow of other lenders; it’s a significant increase.”

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