View more on these topics

Yorkshire mulls proc fees for retention business

Yorkshire Building Society 2016

Yorkshire Building Society is reviewing whether to reintroduce procuration fees for retention business.

The lender, which stopped paying the fees in 2009, will make a formal decision about restarting in the next three months.

A Yorkshire Building Society spokeswoman says: “It is something we are reviewing at the minute, we are looking into the possibility. But we have not decided yet.”

The lender’s intermediary arm, Accord Mortgages, offers a retention-only range but does not market better rates for renewal customers.

L&C Mortgages associate director David Hollingworth says: “I think this is great. This will be an area that lenders are increasingly looking at.

“Keeping hold of your existing customers will be even more important in today’s market and recognising brokers role in that will be a growing trend.”

Yesterday Skipton said it was launching a pilot scheme to pay brokers proc fees for retention business. The six-month pilot will be with Connells and London & Country, although it will be rolled out to the rest market later this year.

Recommended

Skipton-Building-Society-700x450.jpg

Skipton to pay proc fees in retention pilot

Skipton Building Society is set to launch a mortgage retention pilot and will be paying a procuration fee. The six-month pilot will be with Connells and London & Country. The lender will not be paying a full proc fee for retention business, but it is not disclosing what this will be as it could change […]

Mortgage Mole

Mortgage Mole: Proc Steady Crew

Proc Steady Crew Mole was amused to see some top punning from the industry this week. When his pals at Mortgage Strategy tweeted the headline ‘Proc-and-bull story’ from an article slamming lenders over proc fees, the response from the industry for alternative puns on the word ‘proc’ was overwhelming. Suggestions from staff at London Money […]

1

Proc, stock & barrel: Is it time for an overhaul of commission?

Lenders’ payment of proc fees is notoriously inconsistent. With brokers aggrieved that their post-MMR workload is going unrewarded, is it time for an overhaul of the proc fee system? The path of lenders’ procuration fees during the past decade tells the story of the mortgage broker industry. From the boom to the bust to the […]

Stuart-Gregory-MM-Peach-700.jpg

Proc and bull story on retention fees

Brokers have to do just as much research and compliance for retention cases, so why should lenders pay them only half? There are times when you wonder if lenders really want business from brokers. A recent experience of a product transfer with a high-street lender is a case in point. With product transfers, we are […]

Newsletter

News and expert analysis straight to your inbox

Sign up