Platform has raised its arrangement fee and rates in a bid to control its share of the self-cert market since The Mortgage Business's temporary withdrawal from the market and BM Solutions increasing its fees.
Platform has increased the arrangement fee on conforming self-cert products from £395 to £495 and raised its one-year tracker from base rate plus 0.55 per cent to base plus 0.8 per cent. Two, three and five-year trackers are now base rate plus 1.15 per cent, up from base rate plus 0.9 per cent.
Sales and managing director Guy Batchelor says it anticipated an extra £7m-£8m in conforming self-certification applications on the market this month following the changes.
He says: “Obviously, with numbers this high, we cannot ignore the potential for new business. However, at Platform we are strong advocates for responsible lending and we feel that in order to maintain our already record-breaking business targets without jeopardising our current service levels, it is necessary to introduce these changes.”
Riach Independent Financial Advisors proprietor Bob Riach says: “Some of the arrangement fees charged for self-cert are excessive anyway as the lenders have less work to do on self-cert.
“They are obviously expecting a surge in the market and are taking advantage of it. Most lenders just put up rates, not arrangement fees, to stem the flow of business.”