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Accord to limit proc fees on product transfer business

Accord Mortgages is to stop paying procuration fees to brokers for existing credit repair customers that have not improved to prime status by the time they remortgage.

The lender will also stop paying a procuration fee on product transfers for existing customers where the client falls outside its new business criteria, such as where the loan to value is over 90 per cent.

Accord will continue to pay procuration fees where the customer improves their credit status to prime by the time they remortgage and where the client fits in with their new business criteria.

The changes come into effect from the start of July and the lender is also taking the step of notifying brokers earlier when their clients are coming up for renewal.

Previously, Accord would tell the broker 90 days before their client’s mortgage was due for renewal, but due to current market conditions, where product ranges are withdrawn at short notice, the lender has decided to give brokers 120 days warning.

But, Accord is also taking the step of contacting the borrower directly seven weeks before their deal matures if the broker has not already been in touch and started the process of finding them a remortgage deal.

Accord is also contacting all its borrowers that are within 18 months of their mortgage deal’s maturity this July to give them an indication of the likely SVR rate they will pay when their current rate comes to an end.

Accord managing director Charles Canning says: “The changes that we are announcing today continue to reinforce and recognise the intermediaries relationship with their customer.

“Working together we can ensure that we give all customers the best opportunity to service their mortgage in the current difficult market conditions.

“Accord remains one of the few intermediary lenders offering procuration fees on existing borrower transfers to its intermediary partners.”

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