Major lenders rule out proc fees for retention deals

London, UK - July 2, 2011: Model figurine of a businesman standing at Super Tax on the board game monopoly Model figurine of a businesman standing at Super Tax on the board game monopoly with hotel on Mayfair and houses on Park Lane and Dice in the background

Half of the top ten largest lenders have no plans to bring in broker procuration fees for retention business.

Of the top ten largest lenders by CML data, Santander, Nationwide, RBS, HSBC and Virgin Money all say they have no plans to bring in retention proc fees.

Lloyds, Barclays, Cambridge Building Society and Clydesdale already pay some form of proc fee for retention business. However, Lloyds is the only lender that pays a full proc fee.

Skipton, the 11th-largest lender, announced this week it was running a proc fee pilot, while Mortgage Strategy revealed that Yorkshire and Coventry building societies are considering paying for retention business.

A Santander spokeswoman confirmed the lender is not considering paying for retention business but added: “As a well-run scale challenger bank, Santander constantly reviews its product offerings and propositions to help it continue to meet its purpose of helping people and businesses prosper.

“We want to grow our mortgage market share in 2016, and so are trialling various initiatives across the mortgage division.

“Depending on the success of these pilots, we may roll out some of the initiatives more widely, if we believe they can help our customers, our intermediary partners and Santander.”

A Nationwide spokeswoman says: “We have procuration fees constantly under review, but have no plans to change our current model at this time.”

RBS head of mortgages Lloyd Cochrane says: “RBS and NatWest are committed to meeting customer needs and the needs of the advisers that help them with their mortgage.

“At this time we are not planning on offering a procuration fee for business that is retained with us but we constantly review our position on this and will continue to do so going forward.”

An HSBC spokesman says: “This is not something we have plans to introduce.”

A Virgin Money spokesman says: “The position is we do keep it under review but we have nothing further to add on it at present.”