View more on these topics

Lloyds to pay full retention proc fees for all cases

Lloyds Banking Group will begin paying full procuration fees on all retention products from 1 August.

At present, Lloyds brands Halifax and BM Solutions, the group’s buy-to-let lending arm, pays full proc fees (the same level as new business) on retention products up to 75 per cent loan-to-value but pays reduced commission on products over 75 per cent LTV.

But from next month, both brands will pay full procuration fees on all retention deals, regardless of the LTV.

The lender is also scrapping its maximum £2,500 commission cap on retention proc fees.

Lloyds says it wants to reward brokers for helping to keep customers by increasing the procuration fees it pays for retention deals.

Chadney Bulgin mortgages partner Jonathan Clark says: “This is a good move and is good news for brokers. 

“It simplifies the proc fees and removes the concern that a borrower will have to have a certain LTV to get a better rate.”

The group overhauled the way it pays commission earlier this year, which was first tipped by Money Marketing sister title Mortgage Strategy. It now pays proc fees based on case quality, using metrics such as applications to completions ratio, arrears performance and what measures a firm has put in place to prevent fraud to determine the commission paid.

The move follows that of rival Abbey for Intermediaries, now Santander for Intermediaries, which switched to a quality-based payment system in July 2012.



Nic Cicutti: Advisers are like stroppy kids with simplified advice

Any parent will know what it is like to try and inspire a young child to engage in worthwhile and safe activities, especially during the summer holidays. Sometimes, you strike it lucky: your ideas are greeted with enthusiasm. At other times, every suggestion you make is treated with scorn, not to mention a series of […]

Simon Evan-Cook

Simon Evan-Cook: Active management – luck or judgement?

Murphy’s law is alive and well in the fund management industry. Active managers had been soundly bashed by popular opinion for several years but, as we entered 2014, there had been a slew of headlines and opinion pieces declaring them to be on the cusp of a new golden era. With this glowing endorsement ringing […]


High street banks face competition probe

The Competition and Markets Authority wants to see an in-depth investigation into competition in the SME banking and current accounts markets following work it carried out with the FCA. The findings represent the first collaboration between the CMA and the financial regulator. The review found “evidence that competition is not effectively serving the interests of […]

HMRC owed £15bn in tax, overpaid credits and fines

The Treasury is under pressure to recover some of the £22bn owed to the Government by taxpayers, including over £15bn due to HM Revenue and Customs in tax, overpaid tax credits and fines. The £15.1bn owed to HMRC accounts for 68 per cent of the £22bn owed to Government as a whole by individuals and […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    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