"The amount of work that goes into placing a product switch can be almost that of placing a new mortgage"
Brokers will now get a proc fee of 0.40%, previously 0.30%, for every product switch booked from today onwards.
The increase comes following news that Paragon has extended the window, from three to six months, in which borrowers with buy-to-let mortgages reaching maturity can switch products.
Director of mortgage sales, Moray Hulme, said: “We know that 2022 will see a large number of mortgages reach maturity and at a time of considerable economic uncertainty, a significant number of landlords will seek to switch over to a new, competitively priced product at the earliest opportunity.
“This latest measure is part of our wider work, where we’ve adapted both products and processes, to support these landlords.
“We recognise that brokers play an important part in this too - the amount of work that goes into placing a product switch can be almost that of placing a new mortgage - so the increased procurement fee is to reflect the value of the intermediary in the process.”
