View more on these topics

L&G chief wants lenders to stop cutting proc fees

Legal & General mortgages director Ben Thompson has urged lenders to stop cutting procuration fees to avoid further damaging relations between product providers and intermediaries.

Barclays, Lloyds Banking Group and The Mortgage Works made changes to their proc fees last month.

Thompson says: “In 1995, when lenders starting paying these fees, they did so because they wanted intermediaries to take care of and manage the arrangement of some of their mortgage business. I would question to what extent this has changed and why some lenders might think that now is a good time to reduce these fees.”

Thompson says that trust would grow between lenders and intermediaries if further cuts are avoided.

He says: “I would conclude that enough is enough, let’s not see any more intermediary firms have their fees reduced and let’s work together as intermediaries and lenders to see what further value we can join-tly derive for each other’s benefit as well as for the benefit of customers.”

Recommended

L&G could add UK equity income to fill fund gap

Legal & General Investments managing director Simon Ellis says the company is looking at adding a UK equity income fund to its investment range. He says the firm is keen to build a strong UK offering and an equity income fund is a clear gap in its range. Ellis says the company wants to assess […]

JPM wages price war on low-cost funds

JP Morgan Asset Management is cutting the fees on its £61m UK active 350 fund in a bid to compete with ultra-low-cost index tracker funds. The company is to rename the fund JPM UK active index plus and will shift its investors into a low-fee share class in response to recent criticism of the “expensive” […]

27

FSA fines Barclays £7.7m for advice failings

The FSA has fined Barclays £7.7m for failures relating to the sale of the Aviva global balanced income fund and the global cautious income fund, which were first exposed by Money Marketing in April 2009. The FSA says Barclays is facing a further compensation bill of up to £42m on top of the £17m it […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There is one comment at the moment, we would love to hear your opinion too.

  1. Seems to me that lenders and product providers are going to cut the intermediary out as much as they can especially when business levels are low and there are few good quality borrowers around.

Leave a comment

Close

Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm

Email: customerservices@moneymarketing.com