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Nationwide and Lloyds cut proc fees

Nationwide Building Society and some Lloyds Banking Group brands have cut procuration fees.

Money Marketing understands Nationwide cut its proc fees for directly authorised intermediaries by two basis points, from 0.35 per cent to 0.33 per cent, from April 2. Appointed representatives are not affected.

Nationwide confirmed the cut but not the new proc fee, saying the information is commercially sensitive.

Lloyds has also made changes to the fees it pays through some brands, effective from April 1.

It is understood that BM Solutions is paying both directly authorised brokers and appointed representatives around two basis points less after the cut. The size of the proc fees varies between distributors.

Lloyds says there will be changes to Lloyds TSB Scotland and Scottish Widows’ commission structures but refuses to disclose details.

An LBG spokeswoman says Halifax “is largely unaffected”.

Legal & General Mortgage Club managing director Ben Thompson says: “We hope this does not lead to further cuts in proc fees. Growth will come from intermediaries so it is important we have a healthy sector.”

Coreco director Andrew Montlake says: “It is disappointing these lenders have decided to do this when brokers need lenders’ support. It is worrying if this turns into a trend but lenders should remember there will come a time when they will need brokers again.”

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