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Mortgage brokers focus on proc fees by waiving admin charges

Mortgage brokers are waiving hundreds of pounds worth of charges in order to attract clients and compete with fee-free firms. 

Proc fees vary between lenders and types of deal but typically they are set at around 0.35 per cent, for instance £700 for a £200,000 loan. Broker fees can vary from being as low as £99 to over £1,000.

Money Marketing has seen evidence of brokers being prepared to waive fees if they are in danger of losing business to fee-free brokers such as London & Country.

One borrower using YourMove, which charges £399, saw her fee waived when she negotiated.

She said: “The broker told me ‘No one else looks at the whole of market unless you pay for it’. I thought that this was how it worked.

“When I phoned to say I can get a free service elsewhere she repeated they won’t look across the whole market. But the minute I said London & Country she dropped the fee.”

London & Country provided Money Marketing with numerous examples of estate agency brokers waiving fees when pressured.

Your Move financial services director Simon Cox says waivers need senior management approval.

He says: “It is not our normal practice to waive a broker fee simply because there is an offer to waive it by another broker as the services being offered may not be on a like for like basis.”

London & Country associate director of communications David Hollingworth says: “For a customer, would you feel it is fair to waive a fee when some people clearly don’t and will be charged? It appears estate agent brokers can not compete with us simply by going head to head.

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Comments

There are 4 comments at the moment, we would love to hear your opinion too.

  1. I am an independent broker and have no problem competing with London & Country and charge fees. We charge and give added value to all our clients because we offer a professional seevice .90% of our business is via client recommendation Enjoy

  2. I’d like to know if mortgage Strategy receive some kind of incentive for the inordinate amount of times they mention London & Country. You could be forgiven for thinking they were they only brokerage in existence.

  3. Hi,
    Great! such a nice article about how Mortgage brokers focus on proc fees that you have shared in this blog. I really like it. Keep it up.

  4. Hi,
    Great! such a nice article about how Mortgage brokers focus on proc fees that you have shared in this blog. I really like it. Keep it up.

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