Quantum Mortgages has increased the procuration fee payable to its registered intermediaries by up to 0.3% percentage points, which the lender says would see broker receive an additional £630 per completed loan on average.
This brings the remuneration paid to directly authorised intermediaries to 0.70% of the loan amount, while networks and mortgage clubs will receive 0.75%.
Quantum’s accredited packagers also benefit from the same increase.
Jason Neale, managing director at Quantum Mortgages, said: “Our intermediary partners are facing a double threat to their incomes this year, in the shape of continued high inflation and the expectation that Buy to Let business could reduce by as much as 20%. This means not only could they see a decline in revenue, the cost-of-living crisis also makes whatever income is generated worth less in real terms.
“We’ve always been keen to support our partners and introducers financially, as well as providing more options for their clients but as with any new start business in its first year, our own budgets were very tight. I’m pleased to report that we exceeded all targets in our first year and were considerably below our operating budget which gives us the opportunity to review our fee structure and generate more income for our valued intermediary partners.”
Peter Williams, CEO of comparison site, PROPP, added: “It’s refreshing to see a lender increasing proc fees rather than working out how they can reduce them. We are not immune to the increased cost of living and have seen both our business costs and personal costs rise significantly over the past year, against a backdrop of ICR calculations making it far more difficult to place buy-to-let mortgages.
“Quantum Mortgages have been a breath of fresh air since launching with their flexible lending criteria and common-sense approach. To receive an increase in income whilst enjoying their proposition is most welcome.”
