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Lenders&#39 anger at £30k fee to join Misys panel

Lenders are blasting Misys Lending Service, the mortgage network launched this month, for demanding an annual fee of £30,000 to become a premier lender on its panel.

Specialist lender Verso says firms are being asked to pay this fee to be a premier panel member and in return they get marketing and promotional services that other “non-premier” lenders on the Misys panel do not receive.

Verso believes the fee is unjustifiable, saying the network is a low-cost operation which should easily be able to cover its outgoings.

It says this fee is a further squeeze on lenders&#39 already tight margins.

Other industry sources say many lenders are still refusing to pay the fee despite claiming that it has now been cut to between £10,000 and £15,000.

Misys admits it is charging an annual fee to premier lenders but will not confirm the amount although it denies it has been reduced.

It also says it has the target amount of lenders in its premier category but will not provide details.

Lending services manager Andy Young says: “We have 25 lenders on our panel and a small group of premier lenders we work closely with to develop joint marketing initiatives for an annual fee. This is extremely good value for money – lenders pay other distributors like mortgage clubs for promotional events such as roadshows.”

Verso director of business development Eddie Smith says: “It is true that lenders are being asked to pay an annual fee of £30,000 to join the premier panel. We all understand Misys must market the panel but this is putting pressure on margins and we also would be expected to offer good exclusive products with market-leading rates, which is a further squeeze.”

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