The Mortgage Works  

TMW sets date for proc fee rollout

TMW sets date for proc fee rollout

The Mortgage Works (TMW) will begin to pay procuration fees on retention business for all applications from 1 August.

Intermediaries will receive a gross procuration fee of 0.2 per cent for all existing customers switching products, the lender has announced.

TMW, which is part of the Nationwide Group, said the fees will be launched simultaneously to all intermediaries rather than through a phased roll-out process.

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It follows investment by Nationwide in its online systems to enable brokers to switch products and receive a procuration fee.

The lender is currently on track to launch procuration fees for retention business for Nationwide prime members later in the summer.

Paul Wootton, managing director of TMW, said: “We announced that we would be offering procuration fees for retention business earlier this year, and we are now able to do so for TMW. 

“We have long valued the support and hard work of our intermediary partners and we are pleased to be in a position now to roll out retention procuration fees.”

In recent months there has been a spate of lenders raising or introducing procuration fees, with Santander introducing a minimum fee of £400 where the loan is £25,000 or more earlier this year.

The Association of Mortgage Intermediaries has said this is because of the phasing in of the Bank of England’s term funding scheme (TFS), which incentivises lenders to boost net lending in order to benefit from its cheap borrowing rates.

Nick Green, broker at Coventry-based Alternative Estates & Financial Services, said: “That’s really good news that TMW will begin to pay procuration fees, as their system is really easy to use with very limited data to input - you pick one of the available products and accept, and it’s done.

"I would say compared to other lenders this is the easiest to use for product transfers.

"It makes sense the whole market has access to it as their system tend to be quite slick on this side and fully automated as far as the broker is concerned."