Mortgages  

Leeds introduces retention proc fee

Leeds introduces retention proc fee

Leeds Building Society will introduce retention procuration fees this year.

It will pay 20bps to intermediaries for product transfers, as well as paying a full proc fee to those helping existing borrowers to port their mortgages.

Porting is the borrower taking a product and the early repayment charge with them to another mortgage with the same lender.

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Jaedon Green, Leeds Building Society’s director of product and distribution, said: “We’re making this change to reflect the work done by brokers in retention cases.

“While we’ve remained focused on growing our lending and supporting the wider mortgage market, we’re excited to confirm we’re also developing our retention capability. We expect to be active by the end of the year.

“The majority of our mortgage business is done through our intermediary partners so our retention practices are broker-friendly and we listen closely and are responsive to their feedback.”

There has been a spate of activity on procuration fees in recent weeks, with Santander introducing a minimum fee of £400 where the loan is £25,000 or more earlier this month.

Meanwhile Nationwide has said it will also pay brokers a proc fee for retention business.

damian.fantato@ft.com