CompaniesMay 11 2015

Family BS increases proc fees across mortgage range

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Family BS increases proc fees across mortgage range

The Family Building Society has increased the procuration fees paid to introducing brokers for its Family, Offset and Low Start mortgage products.

The gross fee paid for the Family Mortgage rises to 0.55 per cent from 0.45 per cent, while the gross fee paid for the Offset mortgage increases to 0.5 per cent from 0.4 per cent and the Low Start mortgage increases to 0.45 per cent from 0.35 per cent.

In all cases the product fee remains at £545.

Procuration fees for all other mortgage products remain unchanged.

Cameron Amaira, head of intermediary sales at the building society, said the decision to up procuration fees reflects the amount of work intermediaries need to devote to applications involving multiple family members or borrowers with changing circumstances.

He said: “As a result our new fees are amongst the highest in the market, particularly for high LTV mortgages where the Family Mortgage also leads on value for first-time buyers,” adding that the intermediary channel provides 80 to 90 per cent of all introductions for the society.

Keith Barber, director of business development, added that feedback from both customers and brokers has remained positive since the launch of the new society and its range of mortgage products last July.

“We listen to the views of intermediaries and have increased our fees as a result.”

The procuration fee rise rush appeared to have died down since the start of the year, after lenders across the market upped rates to support adviser channels.

peter.walker@ft.com