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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.”

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  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.

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