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Santander wants to roll out quality-based proc fees to DAs

Lenders respond to whether they will commit to paying DAs and ARs the same proc fees.

Santander says its long-term ambition is to roll out its quality-based proc fees to directly authorised brokers as well as appointed representatives.

At the Financial Services Expo in London last week, Money Marketing’s sister publication Mortgage Strategy asked lenders whether they would commit to paying DAs and ARs the same proc fees.

The question followed an investigation by Mortgage Strategy which found that DAs could have been paid tens of thousands less in proc fees over the last five years compared to ARs.

Santander for Intermediaries head of sales development Graham Sellar said ensuring the lender received quality business was the reason why it originally decided to link its quality metric to proc fees 16 to 18 months ago.

He says the long term aim is to roll out the quality-based proc fee metric to DA brokers as well.

He said: “Our ambition is to have that whole of market – we would like to have a quality metric for every intermediary we deal with.”

Barclays intermediary managing director David Finlay said: “There is a real opportunity for us to rethink our proc fees and rethink how they are distributed among the marketplace.”

Nationwide senior manager for group intermediary sales James Chidgey said it was too early to say what it would do on proc fees before the mortgage market review is introduced.

Aldermore Mortgages managing director Charles Haresnape said the lender paid the same proc fees regardless of whether firms were ARs or DAs.

Mortgage Centre IFA director Fahim Antoniades says: “There is no difference in quality between ARs and DAs. I don’t see why Santander should assume one channel will represent a better source of business than the other so it would be a sensible move.”

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