FSE Cardiff: More lenders to pay retention proc fees

Ryan Bembridge

June 29, 2016

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A growing number of lenders will pay procuration fees for retention business, John Coffield, head of Paradigm Mortgage Services, said at FSE Cardiff today.

He reckoned the trend is only going one way after Virgin Money announced that from July brokers who send customers back to the lender will get a retention proc fee.

Coffield said: “The move towards retention procuration fees is building up a head of steam.

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“I think we may look back at this in two years’ time and wonder what all the fuss was about.

“We are certainly past the point of no return with a growing number of lenders paying for this business.”

However Ian Andrew, managing director of intermediary sales at Nationwide Building Society – which doesn’t pay proc fees for retention business – said it won’t change its stance anytime soon.

He explained: “We don’t have the technology at the moment to do it – the functionality has not been built.”