Newbury Building Society is set to start paying procuration fees for retention business to mortgage brokers from this summer.
The lender will pay a fee of 0.2 per cent for existing customers who are transferred on to a new product.
Newbury is the latest in a flurry of lenders moving to introduce proc fees on retention business. But some brokers think they are still not being adequately compensated.
Jonathan Clark, mortgage partner at Chadley Bulgin, said: “Most lenders do not pay enough, in my opinion fees should average between 0.25 and 0.3 per cent. But the environment is getting better for adviser. The payment of proc fees for product transfers has been a welcome development and should increase most adviser’s overall income.”
Karen Smith, sales manager at Newbury Building Society, said: “We have always valued the support and hard work of our intermediary partners and would like to thank them for their business.”
Newbury will confirm an exact date for the introduction of the payments closer to the summer.