Your Views

Brokers decry ‘pretty tasty’ proc fees as the preserve of the few…

Brokers continued to speak out in their droves in support of the Association of Mortgage Intermediaries’ plan to block a ban on procuration fees, and responded to comments in an article in our 19 April issue…

I have only recently started charging a broker fee. This is not out of greed but out of necessity; anyone can be a busy fool.

If you are arranging £500K-plus mortgages in the South-east, I agree with Alastair [McKee, managing director of One 77 Mortgages] that proc fees are “pretty tasty” and there may not be the need to charge fees, but most of us arrange much more modest mortgages. Also, the smaller mortgage customers are generally the ones who need the most help and advice.

What is your solution, Alastair, for these customers? The options are to either not do the business at all or do it at a loss and take on that advice burden for the rest of our lives.

Our workload has increased dramatically, the regulatory burden only ever increases (FSCS with pensions), lenders are still pretty incompetent on occasions and their underwriters do not liaise with brokers like they should.

The only options I see are increased proc fees or charging customers on a ‘case by case’ basis if it warrants it. Otherwise these customers will end up at their banks, receiving poor advice from a single provider and, in many cases, told they cannot get a mortgage at all.

Vinny Parker

…with reminder that bread-and-butter £100K deals require equal work

Having just read the article headed ‘Brokers back Ami over harm from proc fee ban’, I must take issue with Alastair McKee.

His statement that “most proc fees are already pretty tasty” is way off line. Maybe they are fine in the South for a £600,000 mortgage, which is probably where he comes from, but the reality is that many, many mortgages, from the Midlands to further north, are for far less. So a 0.32 per cent proc fee on £600,000 is £1,920, a very tasty proc fee, but is only £320 for a £100,000 mortgage, of which we see plenty.

But both cases involve the same amount of work. In reality, therefore, if you are not a broker down south you are greatly disadvantaged by not charging a fee.

Brian Rossiter

Support for MS article’s call to build far more houses, not just flats

There was also support in response to last week’s Housing Watch, in which improved supply and lender innovation were called for to help first-time buyers to purchase a home…

Completely agree. More houses must be built, not just flats.

It will come to a point where we all live in flats, with only the older generations enjoying the luxury of a garden. Also, our generation should not have to choose between having a family or buying a house.

With childcare costs so high, people are delaying having children so they can buy a home; or delaying buying a home so they can have children. It’s not fair.

Vicki Clarke