Proc fees for all firms are increasing to 0.50% gross, and the new net fee will be 0.45% net.
On an average case size of £160,000, this raises the proc fee by 29% to £720.00, up from £560.00.
Skipton Building Society today announced that from Monday they will increase procuration fees to 0.4% for all new residential mortgage applications.
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.”
