The launch of instant offers in the sub-prime market could signal a reduction in proc fees for brokers, according to Openwork mortgage proposition director Paul Shearman.He believes the fact that brokers will have their work cut less with such technology means that lenders may start offering reduced fees. Some commentators have recently slammed the high fees earned by sub-prime intermediaries, with an article in one national newspaper recently labelling such brokers “Ferrari kings” because of their earning potential. GMAC and Edeus have both launched instant offers, with BM Solutions likely to follow suit later this year. Shearman believes proc fees for self-cert and buy-to-let business may increase because of the increasing number of lenders entering the market desperate to tempt brokers. He says: “The degree to which sub-prime rates are sustainable is debatable because of technology and the amount of time it takes to be able to arrange a sub-prime deal because of Poso coming in. There was more work involved in the past so there was for more justification for higher fees but not anymore. “Proc fees are likely to go up in the specialist market as there are a greater number of players in BTL and self-cert. The overall view for prime is that fees will stay as they are.” London & Country head of communications David Hollingworth says: “We see 2 or 3 per cent figures in addition to a proc fee on sub-prime and those are steep figures and need to be reduced.”
The latest round of restructuring at Hendersons Global Investors looks to be the most dramatic the group has performed for some time. Two years ago Phil Jefferson was brought in as head of UK wholesale to get on with the onerous task of restructuring the retail distribution of an illustrious fund house that had lost its way.
Network Data has announced a threefold increase in profits during the first half of the year, following the floating of its parent company last week.The firm, whose parent Network Data Holdings began trading on the Alternative Investment Market last week, saw pre-tax profit soar from £268,000 from the same period last year to £880,000. The […]
The buy-to-let market is unlikely to see any significant future innovation because it is mature and has already undergone its metamorphosis.Brokers and lenders agree that the market remains buoyant and is not desperate for any new types of products or major changes.It is also doubtful if many new lenders will enter the sector as it […]
Consumer portal Find has bought Defaqto’s parent, The Independent Research Group, in full
Employees at Johnson Fleming, in Bromsgrove, Worcestershire, are looking forward to trying out some dramatic new hairstyles on Wig Wednesday. A host of colourful wigs will brighten up the office on 20 May as staff support children and young people with cancer.
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