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‘No need to bring in level proc fees’

Brokers claim there is no need to introduce level procuration fees and that commission bias is not an issue in the mortgage market.

The FSA is tipped to propose level proc fees in its mortgage conduct of business discussion paper, expected later this month. A ban on self-certification mortgages has also been touted.

But London & Country technical manager Richard Morea says: “Most proc fees we get are pretty level anyway, certainly on the similar types of products. It does not have an impact on our choice of lender.”

Association of Mortgage Intermediaries policy director Andrew Strange says: “I do not think that there is any evidence that proc fees have posed a detriment to consumers. If there is no bias, then why make this change?”

John Charcol senior technical manager Ray Boulger says: “There is very little consumer detriment as a result of proc fees. Why bring in rules to deal with a problem that does not exist?”

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