Skipton Building Society  

Skipton to pay additional proc fees

Skipton to pay additional proc fees

Skipton Intermediaries will pay procuration fee payments for all introduced business from the end of January.

The building society will introduce an automated process on its eMortgages system that will allow for additional borrowing and additional proc fees.

The gross fees paid will be the same as the current product transfer rates at 0.3 per cent on residential and 0.35 per cent on buy-to-let business.

The fee will also be paid for standalone additional borrowing, the lender stated.

Paul Darwin, director of intermediary relationships at Skipton, said: "This is something we have been considering for some time, and something our broker partners have fed back that they would like to see.

"But it is also something we feel is reflective of the current mortgage market – as more and more borrowers are taking longer term fixed rate products and staying in their homes for longer."

He said with higher moving costs, including stamp duty, the lender has seen more borrowers extend and improve their homes to suit their changing needs.

"We are adjusting our processes to meet this emerging trend to help deepen and lengthen relationships with both our borrowers and broker community," he said.

Skipton has recently added to its product transfer application process by including more complex post contract variations, such as change of term and repayment type and product transfers for interest only mortgages.

Earlier this month Accord Buy-to-Let announced it had started to accept product transfer requests and pay brokers a 0.3 per cent procuration fee for retained business.