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Nationwide and Lloyds cut proc fees

Nationwide Building Society and certain Lloyds Banking Group brands have made cuts to their procuration fees.

Money Marketing understands Nationwide has cut its proc fees for directly authorised intermediaries by two basis points, from 0.35 per cent to 0.33 per cent, but appointed representatives are not affected.

Nationwide would not confirm the extent of the cut as it considers the information “commercially sensitive” but said the fees it pays intermediaries are still competitive.

A spokeswoman says: “We are confident that our procuration fees are competitive. We still pay more than some other major lenders.”

Lloyds Banking Group has also made changes to the proc fees it pays through certain brands.

It is understood BM Solutions will pay brokers – both directly authorised and appointed representatives – around two basis points less after the cuts, although this will vary between distributors.

Its Lloyds TSB Scotland and Scottish Widows brands have also witnessed changes to their commission structure but Lloyds would not confirm any details, except that some distributors would have experienced increases and some decreases. It is understood Halifax is largely unaffected by the changes.

A LBG spokeswoman says: “We regularly review proc fees to ensure that they remain aligned with our business strategy and in line with the market. We have recently communicated some changes across our brands, which were effective from April 1, as a result some fees have reduced but others have increased.”

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Comments

There are 6 comments at the moment, we would love to hear your opinion too.

  1. Yet again the broker takes the hit, or has more work / responsibility for less pay and people wonder why the good people leave the industry

  2. Usual short-termism of lenders. Brokers work hard and save the lenders a lot of money in overheads etc. They give you an umbrella when it’s dry and take it off you when it’s wet! The FSA allow them to dual price when we are the cheaper option. That’s not TCF and this is just another ploy to remove choice from the consumer by making it unprofitable for brokers to survive.

  3. interesting both lenders make the announcement on the same day…….if i didn’t work in this industry i may have suspected collusion….

  4. As a point of interest I placed an advert in the local paper for a mortgage advisor position. Nearly 2 weeks later, how many replies?…………………………………… two, and one of those was from a recruitment agency! That sadly sums up the regulatory damage that the financial advisory industry has suffered and how unattractive the proffesion has become!

  5. I have no problem with lenders cutting proc fees if the savings are going to be directly passed on to
    consumers.

    Advisors already have great analytic scope and unless lenders are going to offer each others products across a whole of market advice model they wont be able to compete with that.

    The proc fee has and always will be the last box ticked when researching mortgages for my clients.

  6. This is what happens when brokers recommend direct only deals that don’t pay commission. The lenders know we are a push over.
    I personally have had enough and its time to move on.

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