Abbey increases proc fees

Amanda Jarvis

May 8, 2006

The lender now offers around 0.45 per cent on its five, seven and ten-year fixed rates with the aim of raising the product’s profile among intermediaries.

Abbey also said that they were also looking to extend the enhancement to its tracker and capped product range if it proves a hit with brokers.

Joe Wiggins, media relations executive at Abbey for Intermediaries, said: “We aim to offer the best overall proposition to brokers and the rise in procuration fees, supported by our lending criteria and our service proposition, will hopefully help to do that.

“The increase brings our longer-term fixed rates into line with our flexible products and will be available to brokers from today.”

Abbey said the move was part of a campaign to focus on its longer-term products so the possibility of it being extended to its longer-term tracker and capped products was on the cards.

However, the lender insisted there was no fixed timetable for the move and that they were monitoring the market’s response to its move on the fixed rate products.

Mike Fry, director at Halton Insurance Service, said: “I’ve been very impressed with the Abbey in recent weeks and this is a good move. Its online service and speed of offer have been very good and if we are going to get paid more for using them, then it’s a good move.

“In my opinion though, I see the proc fee as just a bonus and it’s more about the product on offer and the speed and support the lender gives. However, Abbey seem to be getting this right at the moment so it’s a tremendous bonus if the proc fee is high.”

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