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Barclays, TMW and Lloyds make proc fee changes

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.

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Comments

There are 11 comments at the moment, we would love to hear your opinion too.

  1. sounds like a bit of collusion here……with proc fee fixing, when will the OFT get involved. and coincidentially it all happens at the same time.

  2. “Barclays argues that having one proc fee for all residential mortgage applications will make it easier and clearer for brokers to understand.”

    Why do they treat brokers like idiots – do they really think we prefer proc fees to be clearer rather than higher? We all know they have to cut costs – just say it.

    I am thoroughly tired of banks, in the ‘corporate speak’ world they take the biscuit.

    Dear Barclays – talk plain English and treat your broker customers with a degree of respect and intelligence. Honesty goes a long way.

  3. Thankyou so much Barclays for making your Proc fees so much “easier and clearer” to understand. I think understand it, you are now paying us LESS! Well done!

  4. coincidentally it happens to be 3 weeks from the end of the year, when these agreements are being signed/renewed.
    dont think the conspiracy theoreists are justified here. would be interseted to know how much extra the likes of L&G, sesame etc get compared to the rest. shame they won’t tell us…

  5. If Barclays/Woolwich wanted to make things clearer to understand for brokers they’d sort their service out once & for all – not reduce proc fees.

    Also wondering why, in the interest of clarity you understand, they didn’t increase the rates on their standard products instead?

  6. Making the Call Centre clearer should be more of a priority than reducing the proc fees.

  7. I didn’t know they we still lending money. Having to book money for each client is a farce. Clarity is when a system is clear and easy to understand. Instead of reducing the proc fee they should price match it and mark it upwards and perhaps we would all use them.

  8. the arrogance of these companies!!! They give us little or no service or respect, and expect us to give them business, do much of their work and they want to pay us less.
    Wish we didn’t have to deal with them.

  9. What a week, not only has my network decided to increase my monthly charges because I have not achieved the level of turnover it requires but now Barclays are reducing their proc fee!
    Love this job!

  10. Yes…networks really ‘support’ don’t they?

    On one hand… ‘Yes we understand that it has been tough for everyone’ before following it with..

    ‘As your turnover hasn’t been enough, let’s have the difference over a few months, therefore reducing your ability to trade effectively’.

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