Santander has launched an enhanced procuration fee of up to 70bps for certain key accounts for brokers selling 10-year fixed-rate mortgages.
Santander recently started paying the proc fee, about double the average payment of 35bps, for its 10-year fixed-rate at 3.94 per cent and 60 per cent loan-to-value.
The product was launched direct-only then rolled out to brokers. It has a £995 fee and a maximum loan of £1m. It comes with the remortgage and homebuyer solutions which offer free valuations and £250 cashback.
The bank applies differential proc fees depending on the length of product term. It pays 50bps on residential business longer than five years, 50bps on buy-to-let business and 40bps on its Flexi mortgage products.
Appointed representative proc fees can vary between key accounts but there are flat gross proc fees for all directly authorised brokers via mortgage clubs.
A Santander spokeswoman says: “We constantly review our offering in line with the market. Our proc fee structure is created to support intermediaries and the rate for our 10-year product reflects the long-term nature of this business.”
Mortgage Centre IFA group director Fahim Antoniades says: “The average remortgage term for first-time buyers is under five years, so this helps keep borrowers on Santander’s books.”