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Proc fees could be blocked if loan is sold on

Concerns have been raised that brokers may see the potential to earn future proc fees dashed once a mortgage is sold or securitised.

In a case involving A J Hird Insurance Consultants dir-ector Chris Cundell, his client’s mortgage was sold by Amber Homeloans to Infin-ity Mortgages and when the client moved home and the mortgage needed to be por-ted, Cundell was not given the expected £249 proc fee he would have got with Amber as Infinity told him they do not pay proc fees on Amber loans.

Infinity marketing and communications head Simon Buddle says the lender “may or may not” keep the same terms and conditions for loans bought from other lenders as agreements can vary.

Cundell says: “It is frustrating when you do the work but are not rewarded, yet if my client transferred to another lender, I would have got paid. If the loan was with someone like BM Solutions, we would have been paid an even bigger proc fee.”

Pink Home Loans managing director Tony Jones says: “With more and more lenders securitising, it may become more of a problem but it is not one I have come across regularly and it has not been brought up by our brokers, so hopefully it is an isolated incident.”

Hamptons International Mortgages managing director Kevin Duffy says: “This instance is a bit like seeing Halley’s Comet – it will happen but once in a blue moon.”

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