Barclays is to stop paying an enhanced procuration fee on offset mortgages and is scrapping proc fees on further advance applications while The Mortgage Works has lowered its enhanced proc fee paid to certain distributors.
From January 1, the proc fee Barclays pays for offset mortgages will be aligned to the lender’s other main residential mortgages and proc fees paid on further advance applications will be scrapped.
Barclays argues that having one proc fee for all residential mortgage applications will make it easier and clearer for brokers to understand.
A spokeswoman for Barclays says: “Barclays is making some small changes to the procuration fees to ensure our fees are in line with the market. We remain committed to the broker market and continue to have a competitive product offering for intermediaries.”
The Mortgage Works has decreased the enhanced procuration fee it pays to certain distributors, in a move that will come into effect in the New Year.
It says this will align its fees to the rest of the market. However, TMW said it could not disclose the fees as it would break contractual confidentiality.
TMW’s standard buy-to-let proc fee will remain at 0.45 per cent.
Lloyds Banking Group has adjusted its proc fees for applications made to Halifax and BM, which will come into effect on January 1.
The lender is making changes to the fees paid to its national account partnerships. Fees will decrease for some national accounts but increase for others. LBG would not say how much the fees would move.
An LBG spokeswoman says it has made changes to its proc fees as the current arrangements have been in place for three years and “the market has changed” in this time.