Proc Fees & Retention Proc Fees – Who’s Paying What?

Over the last six months, several lenders have announced that they will begin to pay retention proc fees.

Due to the success and praise these lenders have received from the broker community, more and more lenders over the last few weeks have started to follow suit.

We’ve rounded up the latest lenders who have launched, or are in the process of launching, retention proc fees across their residential mortgage ranges. In addition to a few lenders who have recently increased their proc fee payments.

Retention Proc Fees – Who’s Paying What?

Santander: Confirmed that they will pay a proc fee of 0.2% on all retention business being transacted through their online portal from the 1^st March.

NatWest: Confirmed last week that they will be introducing retention proc fees later this year. It plans to pay 20bps on completion of each case on both residential and buy-to-let business.

RBS: Confirmed they will be introducing retention proc fees later this year. It plans to pay 20bps on completion of each case on both residential and buy-to-let business.

Nationwide: Confirmed this week they will be introducing retention proc fees in summer. It plans to pay 20bps on product transfers.

Aldermore: Confirmed that they will pay a retention proc fee of 0.30% (net) on product transfers for existing customers moving onto one of Aldermore’s Loyalty Mortgages from 3rd April.

The Mortgage Works: Confirmed this week they will be introducing retention proc fees in summer. It plans to pay 20bps on product transfers.

Leeds Building Society: The Society will be introducing retention proc fees later this year. It plans to pay 20bps on product transfers.

Family BS: Confirmed last week that they will be introducing retention proc fees in the coming few months.

Coventry BS: A proc fee of 0.30% for all buy to let product transfers will be effective from 1 April 2017. Plans to extend the scheme to the residential products, also at 0.30%, are underway and will be announced in due course.

Bank of Ireland: In October 2016, the bank introduced a gross retention proc fee of 0.25% to brokers when transferring existing customers.

Precise: Already pays a 0.25% proc fee for retention deals.

Barclays/ Woolwich: Ingard receives 0.2% via Brilliant mortgage club.

Virgin: In July 2016, the bank introduced a proc fee of 0.38%.

Skipton: Currently piloting paying retention proc fees to a select few brokers.

Yorkshire BS: Currently piloting paying retention proc fees to a select few brokers.

Proc Fee Increases

Santander:  From Monday 13^th February, Santander will pay a minimum proc fee level of £400 on residential mortgages, where the loan is £25,000 or more. The lender will also increase residential proc fee terms by 1bp on agreed business. For residential mortgages with terms of 5 years or more, they have removed the differential proc fee terms, so you will now receive the same as a two-year fixed deal.

Clydesdale: Now pay 0.40% across both residential mortgage and buy to let products.

If you would like more information on the proc fees which Ingard pays to Network Members, then call our Broker Support Team on 01702 538 800 or email info@ingard.co.uk.