The announcement follows on from Skipton increasing its buy-to-let procuration fees by 15 basis points from 0.35% to 0.50% last year.
Paul Darwin, Head of Intermediary Sales at Skipton, said:
“We’re really pleased to announce an increase in mortgage proc fees for brokers on all new applications received from 2 January 2015.
“We are doing this as part of Skipton’s commitment to Real Life Lending, 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.”
Last month, Accord Mortgages announced an increase in procuration fees across its residential mortgage range from 1st January. Procuration fees for DA firms increased to 0.37% (gross), while those for AR firms rose to 0.4%.
The Nottingham will also raise procuration fees to 0.4% from the 6th January for both residental and buy to let business. The maximum fee will increase from £1,500 to £2000.
Jeremy Duncombe, Director, Legal & General Mortgage Club, commented:
“The announcement by Virgin Money and Skipton Building Society that both intend to increase proc fees significantly is great news. It recognises the increasing importance, cost effectiveness and quality of the intermediary channel to lenders. Legal & General Mortgage Club has been working closely with lenders on the subject of proc fees and it’s fantastic that Virgin have adopted the phrase “a fair day’s pay for a fair day’s work.
“Overall this sends a great signal to brokers who should now be looking to invest in the future of their businesses by recruiting, increasing capacity, improving systems and focusing on re-mortgage opportunities. The onus and responsibility is also now on advisers to respond positively to these changes by continuing to improve the quality of business submissions and applications. It is a two way street, and cases that are packaged correctly on day one are vital for all parties.
“Several lenders have increased fees recently, and the hope is that a clear return on this investment will encourage other lenders to follow suit and increase their fees too.”
