This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. Find out more here.
X
MM+cover+small+180914
Categories:Mortgages

Abbey ditches proc fees for interest-only ports

  • Print
  • Comment

Abbey for Intermediaries will no longer pay a proc fee to brokers for borrowers who port their interest-only mortgage over 50% LTV.

Earlier this month Santander reduced its maximum LTV for interest-only mortgages from 75% to 50% for new borrowers.

But it is currently allowing existing Abbey mortgage customers who have any part of their existing loan on an interest-only basis to port their product to a new property.

It will allow borrowers who have an LTV of between 50-75% to port their mortgage as long as they want to borrow the same amount or less.

Abbey however says borrowers will need to contact the lender direct for the deal and brokers will no longer receive a proc fee.

It will however continue to pay proc fees on all interest-only cases ported below 50% LTV.

Where a customer wishes to port their existing product and borrow more on their new property and the new LTV will be above 50%, brokers can process these applications in the normal way on a capital and interest basis and will receive a proc fee on the total mortgage loan as usual.

  • Print
  • Comment

Daily Email Updates
If you enjoyed this article, sign up to receive the latest news and analysis from Money Marketing.

The Money Marketing CPD Centre
Build your annual CPD - you can log and plan your CPD hours for free with The Money Marketing CPD Centre.

Taxbriefs Advantage
Advantage is a digital reference source giving unbiased, independent, answers to your technical queries. Subscribe to Taxbriefs Advantage.

Have your sayEdit my profile/screen name

You must sign in to make a comment

Fund Data

Editor's Pick



Poll

Do you think the industry is ready to deliver Budget guidance?

Job of the week

Latest jobs

View all jobs

Most recent comments

View more comments