Paragon Mortgages has become the latest lender to introduce procuration fees for brokers.
It will pay a fee of 0.25% “in recognition of the work intermediaries do to deliver good outcomes for existing buy-to-let customers”.
The procuration fee is payable only where the broker is acting on behalf of the customer in the product switch process.
John Heron, managing director of Paragon Mortgages, said: “Our intermediary partners are fundamental to ensuring the right products are delivered to the right customers. We have made significant improvements in our range of switch products which we believe compare very well with options available elsewhere in the market.
“Where a broker recommends a Paragon switch product and is proactively engaged in the process, we believe that it is appropriate that the intermediary is rewarded.”