FeesMar 15 2018

Melton to pay retention procuration fees

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Melton to pay retention procuration fees

The Melton is the latest building society to launch a new product transfer service for brokers.

The service means brokers can offer the Melton's internal scheme transfer mortgage rates to existing customers and the building society will pay a procuration fee of 0.25 per cent of the loan amount for all fully completed product transfers.

Nicola Alvarez, director of sales and marketing at the Melton, said: "The society's new product transfer service is a clear reflection of our commitment to supporting our intermediary partners.

"Product transfers open up a new avenue for brokers and we will pay a procuration fee for helping us to look after our existing customers by transferring them on to our loyalty products."

Daniel Bailey, mortgage broker at Middleton Finance, said the fact lenders are now paying procuration fees on transfers are "long overdue" but the amounts being paid to advisers are still not high enough.

He said: "We still have to do a lot of work for transfers, and the procuration fees should be at the same level as they are for the original deals, because there is still paperwork.

"We are still giving advice that this is the best product for them."

He added that although he didn't specifically know much about Melton's deals, building societies in general offer niche products, and are "a valuable part of the mortgage market."