Natwest ups mortgage broker proc fees

It will pay 35 basis points gross to directly authorised firms and 40bps gross to appointed representative firms. This whole of market change amounts to a 3bps and 5bps increase respectively, the firm said.

The new proc fee levels will be payable on all completed mortgage applications submitted from 1 October onwards.

Last week FTAdviser reported that brokers were demanding an increase in proc fees in response to extra work undertaken following the Mortgage Market Review.

The previous week Skipton Building Society increased its buy-to-let procuration fees by 15 basis points from 0.35 per cent for new buy-to-let cases, following in the footsteps of Leeds Building Society upping its procuration fees on buy-to-let and holiday let mortgages through intermediaries from up to 0.37 per cent to up to 0.5 per cent.

Graham Felstead, head of Natwest Intermediary Solutions, said that the firm regularly reviews all aspects of its proposition to provide a competitive offering to brokers and their customers.

“We are simplifying our proc fee structure and increasing the fees that we pay to both ARs and DAs, bringing us more in line with the market.

“This change, combined with the investments we continue to make in our intermediary business to enhance our service and product range, demonstrates our clear commitment to the broker market.

“I am sure advisers will welcome this announcement.”

There is no change to proc fees payable on completed buy-to-let mortgages, as Natwest increased these proc fees to 45bps gross last October.

Jeremy Duncombe, director of the Legal and General Mortgage Club, said: “Natwest has demonstrated its recent support for the intermediary market and these procuration fee changes simply deepen that commitment.

“By recognising and rewarding intermediaries for the quality of their business and their importance to the overall mortgage market, Natwest sends a clear message to mortgage brokers that it is investing in the future of the market.”