Coventry Building Society  

Coventry to pay proc fee on residential product transfers

Coventry to pay proc fee on residential product transfers

Coventry for Intermediaries is to introduce a procuration fee of 0.3 per cent for residential product transfers within its own range of mortgages.

The lender will pay the fee on all applications received from 24 November.

It follows Coventry’s roll-out of proc fees for buy-to-let product transfers earlier in the year.

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Kevin Purvey, director of intermediaries, said: “We committed to introducing proc fees for all product transfers during 2017 and I’m delighted that we’re delivering on that. 

“Product transfers are becoming an ever-increasing part of the market and we recognise the work that intermediaries have to undertake in order to give advice.”

Coventry’s open transfer policy means existing clients can apply to transfer to any mortgage from its current range on the same terms as new clients.

Ian Gwinnell, director at Midlands-based All Counties Financial, commented: “The problem we have always had in this area is a product transfer is different to a remortgage. 

“When a deal came to an end, normally lenders would not pay if you took another deal with the existing lender. Often, because there was not an incentive to take a deal with the existing lender, advisers would take them to another lender.

“Coventry are recognising a big area of the market. There is not a huge amount of paperwork to carry out because they are already with that lender – they are relatively easy cases. It all stacks up favourably for the Coventry.”

simon.allin@ft.com