The Mortgage Works is cutting its buy-to-let procuration fees following recent cuts by its biggest rival BM Solutions.
TMW, the UK’s second largest buy-to-let lender, currently pays a gross proc fee of 0.5 per cent to mortgage clubs and networks for buy-to-let business.
Money Marketing understands from early May the Nationwide Building Society subsidiary will reduce the proc fees it pays brokers to around the same level as BM, which pays 0.44 per cent to mortgage clubs and 0.48 per cent to networks.
On 1 March, BM changed its proc fee structure. While some accounts saw a small increase to their proc fees, the majority saw cuts of between three and five basis points.
BM now pays 0.36 per cent to directly authorised brokers who submit buy-to-let cases direct to the lender.
TMW refused to confirm whether it will have another tier for DAs who submit cases direct.
A spokeswoman says: “We regularly review our procuration fees and are bringing them into line with the rest of the market.”
Chadney Bulgin mortgage partner Jonathan Clark says: “When coupled with flat house prices and inflation nearing 3 per cent, this is a triple-whammy pay cut for brokers who will ultimately have little option but to move to a fee-charging model.”
Separately, Kent Reliance will pay a fixed proc fee of 0.37 per cent for buy-to-let business from 22 April. It currently pays varying fees depending on what channel the business is submitted through.